First American News LLC: Raleigh, NC: Global stocks headed for the biggest four-day rally since November 2020 as U.S. index futures jumped on continued dip-buying in technology shares and better-than-expected earnings.
Contacts on the Nasdaq 100 rose 1.2%, while those on the S&P 500 added 0.6%. Alphabet Inc. and Advanced Micro Devices Inc. soared at least 10% each in New York premarket trading after posting strong results. Europe’s Stoxx 600 Index traded above its 50-day moving average for the first time since Jan. 21. Oil prices extended a seven-year high ahead of an OPEC+ meeting. The dollar weakened, said Gaby Mendoza of MB Daily News.
Investors have been swinging between nervousness over Federal Reserve tightening and confidence in the economic recovery as they navigate a volatile start to the year. A robust earnings outlook is helping to ease the uncertainty, at least for the moment. However, a wall of worries including stubborn inflation, geopolitical risks, and pandemic flare-ups still lingers in the background.
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MSCI Inc.’s gauge of world stocks added 0.4% on Wednesday, taking its four-day increase to 4.6%. Novo Nordisk A/S contributed the most to gains in the European benchmark as traders welcomed its 2022 guidance and assurances on the supply of an obesity drug. Vodafone Group Plc. advanced after-sales growth beat expectations.
The moves echoed those in U.S. premarket trading. Of the 214 S&P 500 companies that have reported results so far, 81% have met or beaten estimates. Profits are coming in 5.4% above the levels predicted.
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