U.S. stocks bounced back Wednesday, recovering from recent losses driven by heightened Middle East tensions and apprehensions about sustained interest rate hikes. The Dow Jones Industrial Average climbed 150 points, or 0.4%, while the S&P 500 and NASDAQ Composite also rose by 0.4% each.
Investor attention remains fixed on the ongoing quarterly earnings season, with notable movements in individual stocks shaping market sentiment. United Airlines surged nearly 7% after projecting stronger-than-expected earnings for the current quarter, contrasting Travelers' nearly 7% decline following increased catastrophe losses due to severe weather conditions.
Recent market turbulence stemmed from Fed Chair Jerome Powell's remarks hinting at delayed rate cuts amid persistent inflation concerns. Powell's stance, coupled with geopolitical tensions in the Middle East, has impacted risk sentiment, with traders adjusting expectations for monetary policy changes. Meanwhile, crude prices dipped on the heels of rising U.S. commercial stockpiles, signaling potential demand disruptions amid escalating global uncertainties.
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