Stocks on Wall Street rebounded on Wednesday with positive economic updates and strong quarterly reports. Tech giants like Alphabet and Meta Platforms led the gains, countering losses from companies like Nvidia and Microsoft. The S&P 500 rose 0.4%, the Dow Jones Industrial Average climbed 0.5%, and the Nasdaq composite increased by 0.6%.

Company earnings were in focus, with McDonald’s rising 2.2% due to strong sales from its Snack Wraps. International Flavors & Fragrances also jumped 4.1% after beating profit forecasts. On the downside, Axon Enterprise and Live Nation Entertainment saw declines after weaker profit forecasts and missed results.

Wall Street is relying on company earnings data during the government shutdown for economic insights. ADP’s report showed higher private payrolls in October, while the services sector expanded more than expected. Concerns remain about a weakening job market and inflation levels above the Fed’s target.

The Fed cut interest rates to support the economy amid job market concerns and high inflation. Fed Chair Powell expressed worries about more rate cuts as inflation remains above target. Consumer prices rose 3% in September, leaving the Fed in a challenging position regarding future rate adjustments.

With a weaker job market and high inflation, Wall Street anticipates a possible rate cut in December. Investors are less certain now, with a 63% chance of a rate cut compared to 90% before the last cut. Tariff threats from President Trump’s trade war continue to impact markets, with ongoing uncertainty over policy shifts and their effects on prices.

Treasury yields rose in the bond market, with the 10-year Treasury yield reaching 4.16% and the two-year yield at 3.63%. European markets saw gains, while Asian markets closed mostly lower in response to the mixed economic news.

Read more at Yahoo Finance: Wall Street gains ground amid steady flow of earnings reports, upbeat economic updates