A rally by the tech titans drove the S&P 500 and Nasdaq higher Wednesday, but weakness in financial stocks put a damper on the Dow.
On Wall Street, the Dow closed flat. The S&P 500 added nearly a third of a percent. The Nasdaq rose almost three-quarter percent.
Gerber Kawasaki CEO Ross Gerber said investors snapped up big cap tech stocks in anticipation of strong profit growth.
“We have earnings coming into play and clearly technology is going to have blowout numbers and they are not affected by supply chain shortages and inflation, like traditional businesses.”
And there were more signs of inflation Wednesday. A Labor Department report showed consumer prices rose solidly in September, and investors are anticipating that inflation is poised to rise further.
Shares of JPMorgan Chase declined even though the big U.S. bank reported a 24% jump in quarterly profit. A surge in deal making activity and the release of additional reserves set aside for bad loans pumped up the bottom line.
Apple shares fell. A media report said the iPhone maker plans to cut production of its iPhone 13.
And shares of Delta Air Lines flew south. The carrier warned that the sharp spike in fuel prices could result in a quarterly pre-tax loss.