Wall Street closes modestly higher on bargain-hunting and oil recovery
Major equity indexes in the U.S. recovered a portion of yesterday's heavy losses on Wednesday as investors took the opportunity to start buying stocks at lower prices. Moreover, US President Donald Trump's announcement of an agreement with Democrats to pass an extension of the U.S. debt limit until December 15, allowing the S&P financials index .SPSY to rise 0.6% following its largest one-day drop in nearly four months on Tuesday.
In the meantime, crude oil prices continued to rise with the barrel of West Texas Intermediate refreshing its highest level since August 10 at $49.40. The energy sector .SPNY added 1.7%, its best daily percentage gain in more than eight weeks.
Today's data from the U.S. showed that the service sector expanded at a faster pace in July than June and the trade deficit increased by $0.1 billion. “You have opposing forces kind of keeping the market from breaking out to a new high, but yet the fundamental data seem to be keeping it from breaking down and selling off significantly,” Walter Todd, chief investment officer of Greenwood Capital in Greenwood, South Carolina, told Reuters.
The Dow Jones Industrial Average gained 55.29 points, or 0.25%, to 21,807.56, the S&P 500 added 4.75 points, or 0.2%, to 2,464.50 and the Nasdaq Composite rose 17.74, or 0.28%, to 6,393.31.
Headlines from the U.S. session:
- Trump sides with democrats on interim debt-limit fix - Bloomberg
- US ISM Non-manufacturing: Momentum picks up - Wells Fargo
- Markets will continue to focus on geopolitical tensions - UOB
- Fed's Beige Book: Prices rose modestly overall across the country
- Further softening of Fed tightening expectations - BBH
- Atlanta Fed: GDPNow model forecast for real GDP growth in Q3 eases to 2.9%
- Fed Vice Chairman Fischer announces resignation, effective mid-October
- US: Continued growth in the non-manufacturing sector at a faster rate - ISM