Stocks rally to reverse two-day slide, surging on rosy earnings results and economic data; European markets close higher after strong U.S. data
U.S. stocks rallied Wednesday, clawing back losses from earlier in the week, as traders cheered better-than-expected economic data that helped allay recession fears.
The Dow Jones Industrial Average rose 416.33 points, or 1.29%, to 32,812.50. The S&P 500 gained 1.56% to 4,155.17, hitting its highest level since June and wiping out losses from earlier in the week. The Nasdaq Composite increased 2.59% to 12,668.16, boosted by rising tech stocks.
A surprise rebound in July services PMI helped investors shake off worries that the U.S. has already fallen into a recession, sending traders back to beaten-down tech stocks. The index released Wednesday ended three months of declines. Data on durable goods orders and manufacturing in June were also better than expected.
Shares of the electric luxury vehicle maker Lucid Group tumbled 11.7% in extended trading after the company cut its full-year production targets for a second time to 6,000. The original forecast was 20,000. The company also reported a quarterly loss of 33 cents per share.
The pan-European Stoxx 600 closed 0.5% higher, paring earlier losses. Tech stocks added 3.2% to lead the gains as most sectors and major bourses entered positive territory.
At the bottom of the Stoxx 600, Novo Nordisk slumped more than 9.4% despite reporting strong first-half sales.
On the data front, euro zone retail sales dropped by more than expected in June, falling 1.2% month-on-month for a 3.7% year-on-year decline as prices continued to rise, denting consumer demand.
Source: CNBC, Investing.com