Stock market today: Dow rebounds as dip buyers pile into tech following selloff
Investing.com — The Dow closed higher Wednesday, as investors bought the dip in stocks, with tech leading the way following a sell-off a day earlier following stronger-than-anticipated U.S. inflation reading.
By 16:00 ET (21:00 GMT), the blue-chip Dow Jones Industrial Average gained 0.4%, or 151 points, while the benchmark S&P 500 rose 0.9%, the tech-heavy Nasdaq Composite roe 1.3%
Uber Technologies Inc (NYSE:UBER) rose 14% to a fresh 52-week high after the ride0hailing company unveiled a $7 billion stock buyback program and rolled out an upbeat gross bookings growth upbeat, expecting mid to high-teens over the next three years.
LYFT Inc (NASDAQ:LYFT) jumped 35% after reporting better-than-expected guidance and quarterly results as a jump in gross bookings and cost cuts boosted the bottom line. The results drew upgrades from Wall Street, with Wedbush saying it was «encouraged by the improving intermediate-term growth trajectory of the business,» and raised its price target on the stock to $15 from $14.
Lyft had been 60% higher in afterhours trading Tuesday, but pared some of those gains after the company incorrectly forecasted 500 basis points, or 5%, of adjusted EBITDA margin expansion for 2024, which was later corrected to 50 basis points.
Federal Reserve Vice Chair Michael Barr said the Fed was «confident» inflation is slowing toward the 2% target, though cautious that the path will likely be «bumpy.»
Federal Reserve Bank of Chicago President Austan Goolsbee said Wednesday that upside surprises in inflation doesn't mean that the Fed isn't on target to get inflation and rate cuts could get underway even if inflation is slightly higher.
The remarks come just a day after data on Tuesday showed inflation slowed less
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