Stocks closed higher on Wall Street Wednesday for the second straight day after falling sharply earlier in the week. The SandP 500 rose 0.8% and is now on track for a weekly gain. Tech stocks, banks and corporations reliant on consumer spending contributed to the benchmark’s rise. Energy stocks also rose as the price of US crude oil rose 4.3%. Utility and real estate stocks were among the losses.
The rapid market rebound after Monday’s sharp sell-off reflects the tug-of-war for investors as it sees signs of economic growth as the economy reopens, strong corporate earnings and a job market that is away from the potential risks of soaring inflation and the most contagious risks recovered, consider delta variant of COVID19. The stock market has begun to look past the pandemic for what the recovery looks like, said Bill Northey, senior director of investments at the U.S. Bank wealth management.
“Now there is some doubt: what is the pace, the degree of this economic recovery from here?” said North. Signs of Weakness Lurking Beneath the Surface of the Stock Market: Don’t Worry About this. The SandP 500 gained 35.63 points to 4,358.69, the Dow Jones Industrial Average rose 286.01 points, or 0.8%, to 34,798 and the Nasdaq Composite Index added 133.08 points, or 0.9%, to 14,631.95. The Dow and Nasdaq also made up for losses on Monday’s sell-off. , traders continued to raise small business stocks. The Russell 2000 Index outperformed the other major indices by 39.74 points or 1.8% to 2,234.04 points.
The SandP 500, a benchmark for many index funds, has continued to gain traction over the past few weeks despite unsettled trading phases and has reached new highs.What has helped propel stocks up over the past two days is better than expected results from large companies. Summer is often a slow time for Wall Street with investors and traders vacationing and holding their own until the end of the year. The dominant thing that will drive the market, aside from big business reports, will be how well the companies do. versus expectations. Dow CocaCola’s component rose 1.3% on Wednesday after the company raised its guidance for the full year and reported better expected results. Closing bell on Tuesday.
Not all gains were positive, with Netflix down 3.3% and seeing its worst slowdown in subscriber growth in eight years. Earning season will accelerate next week when more than 100 SandP 500 members release their quarterly results. So far, the earnings season has been solid with more than 80% of the SandP 500 beating analysts’ forecasts, according to FactSet.
And that despite the already high expectations that Wall Street has of companies. Bond yields continued to rebound from their sharp drop earlier in the week, with 10-year government bond yields climbing 1.29% from 1.20% the previous day. the delta variant of the coronavirus could affect economic growth worldwide. Among the big winners on Wednesday, Morgan Stanley was up 3.6%, chipmaker Lam Research was up 5% and Occidental Petroleum was up 7.1%. Cruise operators, the big losers in Monday’s stock market crash, rallied again. Norwegian Cruise Line rose 10.1%, Carnival rose 9.4%. % and Royal Caribbean rose 5.4%.
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