U.S. stocks rebounded Wednesday after a strong quarterly report from Microsoft as investors await results from a Federal Reserve meeting expected to set the tone for 2022.
The Dow Jones Industrials popped 355.62 points, or 1%, to 34,653.35.
The S&P 500 recovered 66.77 points, or 1.6%, to 4,423.20.
The NASDAQ hiked 269.76 points, or 2%, to 13,809.06.
All three major indexes are negative in January. The NASDAQ is in correction territory, down more than 14% from its intraday high.
Shares of Microsoft rose 4.1% after the company issued better-than-expected quarterly revenue guidance, boosting the three major indexes.
Microsoft's “conference call went well and ignited the market,” Scott Redler of T3Live said. Whether the stock's rally holds “will tell us a lot about tech,” he added.
Technology shares gained following Microsoft's earnings report. Apple, Amazon, Netflix and Nvidia all traded higher. Tesla shares added 4.2%, with the electric vehicle marker slated to report earnings after the bell.
Corning popped 14.5%, the top gainer on the S&P 500, after the company's quarterly earnings and revenue topped Wall Street estimates.
On the downside, Boeing fell 2.2% after the aircraft maker reported positive cash flow for the first time since 2019, but it took a $3.5 billion pre-tax charge on its 787 Dreamliner program.
The Fed is set to conclude its two-day policy meeting Wednesday and make an announcement in the afternoon. The central bank is not expected to make any policy changes, but investors will look for clues on when — and by how much — the Fed will raise interest rates later this year.
Market participants will also look for hints on further steps the Fed will take to unwind pandemic-era aid.
Prices for 10-year Treasurys were unchanged, keeping yields at Tuesday's 1.78%.
Oil prices gained $1.55 to $89.75 U.S. a barrel.
Gold prices tumbled $16.40 to $1,836.10 U.S. an ounce.