From Nasdaq:

The stock market on Wednesday saw the S&P 500 and Nasdaq 100 close at record highs, with the S&P 500 rising +0.08% and the Nasdaq 100 jumping +0.55%. This was due to encouraging U.S. economic outlook and strong corporate earnings, particularly in the technology sector. Additionally, the People’s Bank of China cut the reserve ratio for banks by 50 bp in an effort to revive China’s economy and support global growth prospects.

On the negative side, bond yields rose after U.S. manufacturing activity saw an unexpected expansion. DuPont de Nemours reported weaker than expected Q4 preliminary net sales, and Kimberly-Clark’s Q4 adjusted EPS was below consensus. The U.S. Jan S&P manufacturing PMI rose more than expected to a 15-month high, pointing towards a potential shift in Fed policy.

Textron, TE Connectivity, and General Dynamics were among the top stock performers on Wednesday, while DuPont de Nemours and Kimberly-Clark saw significant declines. ASML Holding NV led chip stocks higher with a record Q4 bookings, causing a positive shift in the semiconductor industry.

In the bond market, the 10-year T-note yield rose +4.8 bp to 4.176%, and the 10-year German bund yield fell -1.0 bp to 2.342%. The Eurozone Jan S&P manufacturing PMI rose to a 10-month high of 46.6.

The PBOC’s decision to cut the reserve requirement ratio for banks by 50 bp to 10.00% was a significant factor in the global markets’ support on Wednesday. Overall stock performance was mixed, with the Euro Stoxx 50 and China’s Shanghai Composite Index closing up, while Japan’s Nikkei Stock Index closed down.

In the U.S., T-notes fell under pressure after the U.S. Jan S&P manufacturing PMI expanded at the fastest pace in 15 months. Additionally, the auction of 5-year T-notes resulted in a lower demand, causing a reduction in safe-haven demand for T-notes.



Read more: S&P 500 and Nasdaq 100 Post Record Highs on Strong Tech Earnings