Stocks rally for a second day, Dow jumps more than 200 points to recoup Monday’s losses
U.S. stocks climbed higher on Wednesday as equities continued their rebound from a one-day rout to start the week.
Better-than-expected earnings reports from Dow members Coca-Cola and Johnson & Johnson added to the bullish sentiment.
The Dow Jones Industrial Average rose 286.01 points, or 0.83%, to 34,798.00. It’s sitting less than 1% away from a record.
The S&P 500 gained 0.82% to 4,358.69.
The Nasdaq Composite climbed 0.92% to 14,631.95.
The 30-stock index rallied nearly 550 points on Tuesday, after tumbling 725 points on Monday for its worst session in eight months. The back-to-back rallies have now completely wiped the losses from the start of the week for all three indexes.
The bond market, specifically the 10-year Treasury yield, is driving the equity markets. On Wednesday, the 10-year yield rose 8 basis points to 1.29% (1 basis point equals 0.01%). The yield dropped to a new 5-month low on Monday, before stabilizing on Tuesday. The drop in rates unnerved equity investors by signaling a possible slowing of the economy due to spreading Covid variants or a possible Federal Reserve mistake.
Even with bonds moving higher, the trend is still down, compared to five months ago when the 10-year was above 1.7%.
Energy stocks led the continued rally as oil continued to rebound after falling below $70 a barrel on Monday. The Energy Select SPDR rose 3.4%.
Thai
Eng