On Wednesday US stocks rose with a rebound from the Dow after losing for two sessions.
The Dow Jones Industrial Average rose 0.5% or 86 points to 17142 while the S&P Index climbed 0.4% or 9 points to 1991. The Nasdaq composite gained 0.6% or 29 points to 4538.
Small companies’ stocks recovered. The Russell gained 0.6% to 1125 after a decline of 0.9% on Tuesday, and losing 3.5% in the three trading sessions.
The Wall Street Journal quoted Stifel Nicolaus’ trader Justin Wiggs as having said, “It’s been a very strong reversal.”
The Dow is higher 2.9% for the year and the S&P 500 is 7.3% higher after Tuesday’s close. The gains in stock market amid the financial crisis, have been chalked due to the easy money policies of the Federal Reserve, which are making some assets less attractive.
Palisade Capital Management chief investment officer, Dan Veru said, “Interest rates moving higher don’t concern me because it will be the result of an improving economy. I’m confident that the stock market will bear that, because the trade-off will be higher earnings.”
Energy stocks dropped the most at the S&P 500 by 0.7%. Chevron Corp. dropped 1.2% while Exxon Mobil Corp. dropped 0.8%, pacing the Dow decliners.
In commodity markets, futures for crude oil gained 0.1% to $91.662 per barrel. Futures for gold dropped 0.2% to $1,219.10 per ounce.
The strength of the housing market has been in doubt. On Monday, data indicated sales of preowned to have dropped by 1.8% in August from July, ending gains of four months.
NASDAQ quotes Clearpool Group chief market strategist, Peter Kenny as having said, “The lack of trend in the all-important housing market has kept the market trading in a tentative tone, despite the fact that a lot of the other economic data we’ve been getting has been very constructive.”
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