Stocks closed higher on Wall Street Wednesday as investors reviewed the latest round of corporate earnings and an upbeat report from Delta Air Lines that bodes well for the travel industry. The S&P 500 rose 49.14 points, or 1.1%, to 4,446.59. The Dow Jones Industrial Average rose 344.23 points, or 1%, to 34,564.59. The Nasdaq rose 272.02 points, or 2%, to 13,643.59 The S&P 500 is coming off three straight losses brought on by persistent worries about inflation and how the Federal Reserve will respond to it, the AP reports.
Travel-related companies were among the biggest gainers after Delta reported strong revenue during its first quarter and solid bookings. The update is encouraging for the broader travel sector as airlines, cruise lines, and hotels prepare for the summer vacation season. Delta rose 6.3% and rival American Airlines jumped 10.6%. Southwest and United Airlines rose more than 5%. Cruise line operators Carnival and Royal Caribbean also had solid gains, along with Expedia Group.
The Labor Department reported that the surging cost of energy pushed wholesale prices up a record 11.2% last month from a year earlier—another sign that inflationary pressure is widespread in the US economy. That report comes a day after the department reported that consumer prices remain at their highest levels in generations. Banks slipped following a disappointing earnings report from JPMorgan, which fell 4.2% after revealing a sharp drop in profits as it wrote down nearly $1.5 billion in assets due to higher inflation and the war in Ukraine. (Read more stock market stories.)