Dow jumps 420 points to a record close in another intraday reversal, recovery plays lead rally
The stock market staged another big intraday comeback on Wednesday as investors continued to pile into names sensitive to an economic comeback, while looking past the risk of inflation and rising interest rates.
The Dow Jones Industrial Average wiped out a 110-point loss and climbed 424.51 points, or 1.4%, to a record closing high of 31,961.86, powered by strong performance in energy, industrials and financials. Boeing jumped 8.1%, while Chevron climbed 3.7%. Goldman Sachs and Visa both rose more than 3%. The S&P 500 advanced 1.1% to 3,925.40. At its session low, the broad equity benchmark fell 0.6%.
The tech-heavy Nasdaq Composite erased a 1.3% loss and closed 1% higher. Technology stocks sold off earlier in the day as the 10-year Treasury yield topped 1.4% to hit its highest level since February 2020. Higher interest rates could prompt investors to rotate out of high-flyers and into bonds, while they could hamstring growth companies, which benefited from the low-rate environment. Apple, Amazon and Facebook closed in the red but well off their lowest levels.
The stock market posted a sharp reversal in the previous session after the Fed chief’s dovish remarks eased fears about a change in monetary policy in the face of a pickup in inflation and interest rates. Powell said Tuesday that inflation was still “soft” and that the U.S. economy was “a long way from our employment and inflation goals.”
On Wednesday, the Food and Drug Administration’s staff endorsed Johnson & Johnson’s single-shot Covid-19 vaccine for emergency use, bringing in a third vaccine to the U.S.
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Reference: CNBC
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