Stock Market Today: Tech powers stock's record run; Tesla earnings on deck

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U.S. stocks powered higher again Wednesday, potentially setting up the S&P 500 for its fourth consecutive record high, as tech stocks continue to lead gains and investors react to more data showing the surprise resilience of the world's biggest economy. 

Updated at 9:52 AM EST

Worst. Recession. Ever.

S&P Global's January reading of U.S. business activity powered higher again this month, with the group's composite PMI index rising to the highest levels since June.

The headline index jumped 1.4 points from December levels to to 52.3, well ahead of the 50 mark that separates growth from contraction, while its reading of manufacturing activity rose to a 15-month high of 50.3, suggesting little evidence of a near-term recession in the world's biggest economy.

S&P's chief economist, Chris Williamson, said the readings "end a clear and welcome message of resilient economic growth and sharply waning inflation."

Stocks held onto earlier gains in the wake of the data release, with the S&P 500 marked 22 points, or 0.46% higher while the Nasdaq added 113 points, or 0.73%. The Dow was last marked 67 points higher.

Stock Market Today

A host of tech names are likely to capture investor attention today as the Nasdaq looks to extend its January gain of around 2.8% ahead of fourth- quarter-earnings reports from Tesla  (TSLA) - Get Free Report and IBM  (IBM) - Get Free Report after the close of trading. 

Related: Top analyst unveils new Tesla stock price target ahead of earnings

ASML  (ASML) - Get Free Report, Europe's most valuable tech company and a group that manufactures chip-design machines, posted stronger-than-expected December-quarter earnings, including an overall order book of more than $10 billion early Wednesday. 

Germany's SAP  (SAP) - Get Free Report, meanwhile, hit a record following the cloud-focused software group's stronger-than-expected fourth-quarter update and its move to slash more than 8,000 jobs as it deepens its push into AI technologies.

Netflix  (NFLX) - Get Free Report was also flying, marked nearly 10% higher in premarket trading, after it smashed Wall Street subscriber-growth forecasts and posted fourth-quarter earnings that topped analyst estimates. 

Stocks overall are also getting a boost from lower Treasury yields, which slipped in late Tuesday trading following a mixed auction of $60 billion in 2-year notes and a pullback in bets on a March interest-rate cut from the Federal Reserve.

Rate bets are likely to be firmly in the frame again today as well, with S&P Global's closely tracked PMI data for January slated for 9:45 a.m. U.S. Eastern Time.

The overall readings, which provide a good indication of economic activity, are likely to support the market's assumption that the Fed can execute a so-called soft landing and avoid recession this year.

Benchmark 10-year Treasury note yields were last seen trading 2 basis points lower at 4.105% while 2-year notes eased to 4.324%, down around 8 basis points from yesterday's auction levels.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.49% lower at 103.112 thanks to overnight gains for both the pound and the yen.

On Wall Street, futures contracts tied to the S&P 500, which recorded its third consecutive record close last night, are indicating a 21 point opening-bell gain for the broadest benchmark of U.S. blue-chip shares. 

Futures tied to the Dow Jones Industrial Average, which is lagging its two major peers with a year-to-date gain of 0.57%, is priced for an 80 point gain while the Nasdaq is called 125 points higher.

In overseas markets, tech gains lifted Europe's Stoxx 600 to an early 1.01% advance in Frankfurt, while Britain's FTSE 100 rose 0.34% in London following a better-than-expected set of January PMI data.

Overnight in Asia, China's central bank unveiled plans to reduce the amount of cash banks must hold in reserves in an effort to stoke credit growth in the world's second-largest economy. This added to optimism that Beijing is set to unveil a fresh stimulus package ahead of next month's lunar New Year. 

The regionwide MSCI ex-Japan index was marked 1.19% higher heading into the close of trading while Japan's Nikkei 225 slipped 0.8% in Tokyo.

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