Us Stocks Gain On Improved Sentiment

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Us Stocks Gain On Improved Sentiment

Us Stocks Gain As Risk Sentiment Improves

The recovery in the US stocks continues on Wednesday after the brutal sell-off from the start of this week. Although the optimism and the risk sentiment have improved, there are still concerns that the US economy is going through a slowdown.

As of now, DJIA is up by 0.3% (95 points), while the S&P 500 is up by 0.5%. Similarly, the Nasdaq Composite index has also gained 0.6% for the day.

jump in the oil prices has also helped the US energy stocks, adding to the gains of the stock indexes. The increase in the oil prices happened on news of a drawdown in the US crude oil stocks in the week ending on 2nd August.

Crude Oil Prices Turn Higher

According to EIA (Energy Information Administration), a 3.7 million barrels drawdown was witnessed in the crude oil stock of the USA on the week ending on 2nd August. Earlier, a decline of 1.6 million barrels was noticed which shows that the drawdown has accelerated.

If we look at the top gainers on Wednesday, the Williams Companies Inc, Targa Resources Inc, and the Devon Energy Corporation stocks trended higher.

Shopify (SHOP), a key tech stock also gained an impressive 22% as the company's quarterly revenue was above forecasts. Also, the company's AI power tools helped it to secure more customers on the platform.

SMCI (Super Micro Computer) was not so fortunate as it declined 13% on Wednesday. The SMCI's earnings were below the forecast and also raised concerns about the demand of the AI industry. Airbnb also shared the same fate as SMCI as its stocks declined by 14%.

The earnings from the S&P 500 companies have made one thing very clear - Growth remains strong despite the fears of recession. This was shared by the strategists from Citi group as they believe that the tech-heavy S&P 500 remains unfazed.

However, there are still a few more days left in the trading week which means there's still time for the US stocks to reverse all of the sell-off rally from Monday.

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