Stocks rose for a second day Wednesday after earnings reports from two major bellwethers raised hopes that corporate earnings may be better than feared even with a potential looming recession.
The Dow Jones Industrial Average gained 530 points, or 1.6%. The S&P 500 and the Nasdaq Composite jumped 1.5% each.
Nike surged 14% after beating Wall Street’s expectations for quarterly earnings and revenue. The sports apparel company showed progress in its attempt to clear through inventory, posting a decline over the previous quarter.
Meanwhile, FedEx gained more than 4% even as revenue fell short of Wall Street’s expectations with weakening demand. The package delivery giant beat consensus earnings per share estimates and shared a slew of cost-cutting plans.
With the end of 2022 in sight, all three major averages are on pace to post their worst year since 2008 to break a 3-year win streak. The Dow’s down 8.2% for the year and 3.5% this month, while the S&P’s shed 18.6% and 4.9%, respectively. The Nasdaq’s plummeted 31.6% in 2022 and 6.6% in December.