Stocks rebound from 2022 low, Dow closes up more than 500 points and snaps six-day losing streak; European markets close slightly higher
The Dow Jones Industrial Average mounted a big comeback from its 2022 low as the Bank of England said it would buy bonds to stabilize its financial markets, a stunning reversal in the monetary tightening policies implemented this year by most central banks to stifle inflation.
The Dow jumped 548.75 points, or 1.88%, to 29,683.74. The S&P 500 rose 1.97% to 3,719.04, one day after notching a new bear market low. The Nasdaq Composite was up 2.05%, ending the session at 11,051.64.
Apple shares fell 3.4% on Wednesday following a report that the company is ditching plans to boost new iPhone production. Instead of aiming to increase output by 6 million units in the second half of the year as it had planned, it will shoot for 90 million units, unchanged from the prior year, according to Bloomberg.
Shares of the biopharmaceutical company soared 37% following upbeat results from its experimental Alzheimer’s drug study and a slew of upgrades from analysts. Biogen and its Japanese partner Eisai said the drug reduced cognitive decline by 27% and slowed the progression of the disease.
The pan-European Stoxx 600 provisionally ended up 0.3% after a choppy afternoon, having recouped earlier losses of almost 2%. Banks fell 2.2% to lead losses and insurance stocks fell 1.6%, while health care stocks added 1.8%.
Shares of German multinational conglomerate Thyssenkrupp fell 11% by mid-afternoon after JPMorgan reinstated its coverage of the stock with an “underweight” rating.
At the top of the Stoxx 600, Swiss pharmaceutical company Roche jumped 5.7% after a positive read-across from an Alzheimer’s drug study by rivals Eisai and Biogen.
Source: CNBC, Investing.com