US stocks rise as investors weigh growth concerns against strong corporate earnings

US stocks growth investors earnings
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US stocks rise as investors weigh growth concerns against strong corporate earnings

US stocks edged higher Wednesday, with blue-chip stocks advancing on the back of earnings reports that outstripped Wall Street's targets, while investors confronted questions about global economic recovery as COVID-19 infections rise. The Nasdaq Composite, home to large-cap tech stocks, slipped while the Dow Jones Industrial Average gained ground. Stocks on after a rout in the previous session that was triggered by reports about mounting coronavirus cases worldwide. The Dow on Wednesday found strength from shares of , and after each company posted quarterly results that beat analyst expectations and raised guidance. COVID cases have been increasing on the spread of the Delta strain of the virus and could fuel worries about stagflation, or the combination of slowing economic growth and inflation. "If the virus begins to spread rapidly again, that would curtail economic growth and prolong the inflationary supply chain disruptions that have affected so many industries including semiconductors and housing," said Nancy Davis, portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge Exchange-Traded Fund, or IVOL, in a note. "Stagflation is a 60/40 portfolio's worst nightmare, as stocks and bonds tend to fall together during stagflationary environments. Lower economic growth punishes stocks and inflation robs bond