US Stocks rebound on bargain hunting

The US stock market finished session in positive territory after swinging back and forth across the unchanged line on Thursday, 23 February 2023, on the back of bargain hunting, with the Dow and the S&P 500 rebounding after ending the previous session at their lowest closing levels in a month.

However, market gains capped on concerns about the trajectory of interest rates and as Labor Department data that showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, continuing to signal persistently tight labor market conditions.

At the close of trade, the Dow Jones Industrial Average index advanced 108.82 points, or 0.33%, to 33,153.91. The S&P500 index was up 21.27 points, or 0.53%, to 4,012.32. The tech-heavy Nasdaq Composite Index grew 83.33 points, or 0.72%, to 11,590.40.

Total 7 of 11 sectors ended higher along with the S&P500 Index. Information technology was the top performing sector, rising 1.63%, followed by energy (up 1.27%) and real estate (up 1%) sectors. Communication services was bottom performing sector, falling 0.66%.

Semiconductor stocks showed a substantial move to the upside, driven by Nvidia after the chipmaker reported better than expected fourth quarter results and provided upbeat revenue guidance for the current quarter. Other chipmakers such as Broadcom Inc, Qualcomm Inc, Intel Corp and Advanced Micro Devices Inc rose between 0.3% and 3.8%.

Considerable strength was also visible among oil service stocks, which rebounded along with the price of crude oil. Natural gas, computer hardware and networking stocks also saw notable strength on the day, while telecom stocks saw significant weakness.

In corporate news, Wayfair shares dropped 23% to $38.33 after the online furniture retailer posted an annual net loss of $1.3 billion and said it lost 5 million customers in 2022.

Domino's Pizza shares dropped 12% to $307.86 after the pizza-delivery company cut its sales-growth outlook and posted fourth-quarter revenue that missed expectations.

Moderna's stock slid 6.7% to $147.57 after the drugmaker reported lower quarterly revenue and earnings, as demand for its Covid-19 vaccine fell.

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