Propelled by healthy corporate earnings reports on Wednesday, U.S. stocks rose for the second day after a steep plunge on Monday triggered by fears surrounding the global spread of the delta coronavirus variant that could hinder economic growth.
The major U.S. stock market indexes have mostly recovered to levels near last Friday’s close and remain near record highs.
The Dow Jones Industrial Average rose 286.01 points, or 0.83%, to 34,798, while the S&P 500 was up 35.63 points, or 0.82%, at 4,358.69. The tech-heavy Nasdaq Composite added 133.08 points, or 0.92%, to trade at 14,631.95.
Gains were majorly led by companies in the financial and industrial sectors.
The S&P 500 index held support at its 50-day moving average, viewed as an indicator of an asset’s short-term trend, though the rise did not send the all-clear signal. ‘
The index grabbed its biggest back-to-back advance since May 14. Ten of the 11 major S&P sectors advanced in early trading, with economically sensitive industrials, materials, financials, and energy leading gains.
Wall Street analysts peg the recent rise in shares to investors stuck by the “buy the dip” mantra after the Dow on Monday suffered its biggest one-day drop since October.
The advertising firm, Interpublic Group of Companies was up 13.4% to the top of the S&P 500 index after posting its second-quarter profits.
Companies such as Coca-Cola boosted their full-year sales forecast leading to a 1.9% rise in shares, while Verizon Communications was up 1.1% after it beat estimates for quarterly results.
Chipotle Mexican Grill’s shares rose 9.2% after the stock beat estimates for earnings and comparable quarterly sales.
Not all upbeat earnings were reflected in the stocks’ performance. Harley-Davidson’s stock fell 3.6% even after reporting a better-than-expected quarterly profit.
Meanwhile, Netflix’s shares continued to fall 3.2% on Wednesday after it reported its worst quarter for adding new subscribers on Tuesday and said the current quarter would have fewer additions than Wall Street expected.
The 10-year Treasury yield note rose to 1.293% rising by almost 7 basis points.
