The stock market staged another big intraday comeback on Wednesday as investors continued to pile into names sensitive to an economic comeback, while looking past the risk of inflation and rising interest rates.

The S&P 500 advanced 1.1% to 3,925.40. At its session low, the broad equity benchmark fell 0.6%.

Yields came off their highs after Federal Reserve Chair Jerome Powell continued to downplay the threat of inflation, saying it could take three years to reach the central bank’s target consistently.

The stock market posted a sharp reversal in the previous session after the Fed chief’s dovish remarks eased fears about a change in monetary policy in the face of a pickup in inflation and interest rates. Powell said Tuesday that inflation was still “soft” and that the U.S. economy was “a long way from our employment and inflation goals.”

On Wednesday, the Food and Drug Administration’s staff endorsed Johnson & Johnson’s single-shot Covid-19 vaccine for emergency use, bringing in a third vaccine to the U.S.

Plan A : Long if market supported firm above 3907. Targets are 3922, 3940 and 3958.

Plan B : Short if market failed to support above 3907. Targets are 3881, 3852 and 3827. 

U.S. stock index futures moved higher in early morning trading Thursday after the Dow closed at a record level.

The tech-heavy Nasdaq Composite erased a 1.3% loss and closed 1% higher.

Technology stocks sold off earlier in the day as the 10-year Treasury yield topped 1.4% to hit its highest level since February 2020. Higher interest rates could prompt investors to rotate out of high-flyers and into bonds, while they could hamstring growth companies, which benefited from the low-rate environment. Apple, Amazon and Facebook closed in the red but well off their lowest levels.

On the data front, initial jobless claims numbers will be released at 8:30 a.m. ET on Thursday, with economists surveyed by Dow Jones expecting a print of 845,000. Also at 8:30 a.m. ET the U.S. Department of Commerce will release its second estimate for fourth-quarter GDP.

Plan A : Short if market failed to support above 13328. Targets are 13289, 13245 and 13200.

Plan B : Long if market supported firm above 13328. Targets are 13359, 13391 and 13420.

Plan A : Remain buy as long as oil price trades firmly above 62.4. Targets are 63.7 and 64.2
 

Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice.As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.