US stocks surge as Wall Street strives from selloffs

US stocks moved higher during early Wednesday’s US session as Wall Street witnessed strong earnings from Nike and FedEx. These earnings boosted investors looking to fight back recent extensive selling. The S&P 500 rose 1.1%, while futures on the Dow Jones Industrial Average jumped more than 400 points, or 1.3%. The technology-heavy Nasdaq Composite advanced 1.1%.

Investors have been hoping for a Santa Claus rally which is a steady rise in the stock market that typically occurs at the end of December, typically defined as covering the last five trading days of the year and first two of the new year. But concerns over “higher for longer” rates and a looming recession have dampened seasonal optimism.

Wednesday’s positive consumer confidence reading has contributed to the overall market mood early on the trading day. The Conference Board’s Consumer Confidence Index rose to 108.3 this month; the highest since April, from an upwardly revised 101.4 reading in November. Economists expected a figure of 101, per Bloomberg consensus estimates.

Nike (NKE) shares soared 13% after the retailer handily beat second-quarter profit and revenue expectations and reported a decline in inventories from the previous period. While the pileup was still up year-over-year, Nike CEO John Donahoe said he believed the company was past its inventory peak.

Shares of FedEx Corporation (FDX) jumped nearly 4% after the company revealed its aggressive cost saving efforts. CEO Raj Subramaniam said FedEx identified an additional $1 billion in savings beyond the forecast it gave in September as part of its “ongoing transformation while navigating a weaker demand environment.” FedEx sparked a deep selloff in September when it issued a warning about its outlook for the US economy.

Meanwhile, Rite Aid’s (RAD) stock tanked nearly 17% after the drugstore chain reported losses in the fiscal third quarter, weighed down by a drop-off in COVID vaccinations and testing.

Tesla (TSLA) remained in the limelight after sliding another 8% to a fresh two-year low on Tuesday – a decline that came after dropping 16% last week. Chief Executive Elon Musk confirmed on Twitter late Tuesday that he would step down as head of Twitter once he finds a replacement. Shares were roughly flat.