Stocks moved higher in afternoon trading Wednesday after several big U.S. companies reported strong quarterly results. Technology companies accounted for much of the market’s gain, outweighing losses in health care and other sectors. Oil prices reversed an early slide. Bond prices fell, sending yields higher. The market was coming off a two-day drop that was its biggest since August.
KEEPING SCORE: The Standard & Poor’s 500 index rose 8 points, or 0.3 percent, to 2,830 as of 1:25 p.m. Eastern Time. The Dow Jones industrial average gained 163 points, or 0.6 percent, to 26,240. The Nasdaq added 28 points, or 0.4 percent, to 7,430. The Russell 2000 index of smaller-company stocks gave up 1 point, or 0.1 percent, to 1,580.
THE QUOTE: “The markets have turned around,” said Erik Davidson, chief investment officer for Wells Fargo Private Bank. “Many people have been waiting for it to dip as it’s marched higher and higher, and we finally had two days of weakness, particularly yesterday.”
THE FED SPEAKS: Investors were awaiting the Federal Reserve’s latest policy statement, which is due out Wednesday afternoon. The statement follows a two-day meeting of the central bank’s policymakers, including Fed Chair Janet Yellen, who is stepping down when her term expires at the end of this week. The Fed has signaled it could raise its benchmark interest rate three times this year, but analysts don’t expect the first hike to be announced before the Fed’s March meeting.
TECH SURGE: Technology companies posted solid gains, recouping some of their losses from a day earlier. Chipmaker Advanced Micro Devices added 74 cents, or 5.7 percent, to $13.61. Electronic Arts jumped 7.2 percent after the video game maker forecast quarterly earnings and sales that were well ahead of what Wall Street analysts expected. The stock was the biggest gainer in the S&P 500, rising $8.52 to $127.23.