The Nasdaq Composite posted its biggest jump since November, as rallying technology and bank shares led broad gains in U.S. stocks.
Continue Reading Below
It was a turnaround from the previous session, when major U.S. stock indexes posted their biggest daily declines in weeks.
Some traders and analysts said the pullback allowed investors to snap up stocks that have been rising this year with help from solid corporate earnings. Recent declines in the U.S. stock market have been relatively short-lived, and the S&P 500 is up 9% so far this year.
The Dow Jones Industrial Average rose 143.95 points, or 0.7%, to 21454.61 on Wednesday. Gains in J.P. Morgan Chase & Co., Goldman Sachs Group and Apple together added roughly 47 points to the blue-chip index.
The S&P 500 rose 21.31 points, or 0.9%, to 2440.69 -- its biggest one-day increase since late April -- and the Nasdaq Composite climbed 87.79 points, or 1.4%, to 6234.41.
"Nothing about the economy and the makeup of the market has changed, so people are viewing this as the only opportunity they get to jump in and commit some capital," said Michael Antonelli, equity sales trader at brokerage Robert W. Baird & Co.
Continue Reading Below
Technology shares, up almost 19% this year in the S&P 500, were back among the market's best performers Wednesday, rising 1.3%. Some investors' concerns that the sector had grown too popular has contributed to the sector's 0.8% decline in June.
"Everybody remembers the [year] 2000 slipping of the tech sector," said Jae Yoon, chief investment officer at New York Life Investment Management. "But I have no concerns about tech valuations," he said, noting that in terms of price-to-earnings metrics, the sector is trading much closer in line to the S&P 500 than it did at its peak.
On Wednesday, highflying tech stocks like Apple, Google-parent Alphabet, Amazon.com and Facebook each gained at least 1%. Semiconductor company Nvidia rose $5.17, or 3.5%, to $151.75.
U.S. crude-oil prices rose for a fifth straight session, supporting commodity-linked shares.
Financial stocks rose 1.6% in the S&P 500, with Bank of America adding 61 cents, or 2.6%, to $23.88. The bank was expected to get a stress-test result from the Federal Reserve that would let it increase its dividend -- an outcome that was confirmed after the U.S. stock market closed, when all 34 firms tested by the Fed got approval for their capital-return plans. Shares of Wells Fargo & Co. and J.P. Morgan Chase each rose more than 2%.
Reports that investors might have overestimated the European Central Bank's readiness to reel in its stimulus program "got [Wednesday's] rally going," said Mike O'Rourke, chief market strategist at JonesTrading Institutional Services.
The yield on the 10-year Treasury note rose to 2.223% from 2.198% Tuesday. Yields rise as prices fall.
Rising long-term bond yields, which tend to boost lending profitability, have supported bank stocks in recent sessions.
Elsewhere, the Stoxx Europe 600 was little changed and Japan's Nikkei Stock Average fell 0.5%.
Write to Riva Gold at firstname.lastname@example.org
(END) Dow Jones Newswires
June 28, 2017 18:19 ET (22:19 GMT)