S&P 500 hits two-month high on growing recovery hopes
By Medha Singh and Ambar Warrick (Reuters) - The S&P 500 hit more than a two-month high on Wednesday as signs of additional economic stimulus raised hopes of a swift recovery from a coronavirus-driven slump. The tech-heavy Nasdaq was trading at its highest level in three months and was about 5% below record levels, supported by a surge in shares of Facebook Inc and Amazon.com Inc to their all-time highs. Gains were broad-based, with technology and communication services providing the biggest boost to the benchmark S&P .
By Medha Singh and Ambar Warrick
(Reuters) - The S&P 500 hit more than a two-month high on Wednesday as signs of additional economic stimulus raised hopes of a swift recovery from a coronavirus -driven slump.
The tech-heavy Nasdaq <.IXIC> was trading at its highest level in three months and was about 5% below record levels, supported by a surge in shares of Facebook Inc
Gains were broad-based, with technology <.SPLRCT> and communication services <.SPLRCS> providing the biggest boost to the benchmark S&P <.SPX>. The small-cap Russell 2000 index <.RUT> was up 2.5%.
A day earlier, U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell reassured investors that policymakers were ready with more aid for ailing sectors.
Massive stimulus actions and the easing of virus-led restrictions have fueled hopes of an economic recovery and helped the three main indexes climb about 35% from their March lows.
"You have the S&P 500, Nasdaq and small caps all rallying - you have a widening breadth of strength that is giving investors encouragement," said Sam Stovall, chief investment strategist at CFRA Research.
"In general Wall Street is saying 'I factored in a worst case scenario and now it appears as if things are not as bad as they might be'".
At 13:10 p.m. ET, the Dow Jones Industrial Average <.DJI> was up 287.23 points, or 1.19%, at 24,494.09, the S&P 500 <.SPX> was up 41.54 points, or 1.42%, at 2,964.48. The Nasdaq Composite <.IXIC> was up 155.35 points, or 1.69%, at 9,340.46.
The S&P 500 rose above its 100-day moving average, a closely watched technical indicator.
"If we can break through the 3,000 level (on the S&P 500) with some conviction, that's going to be a positive sign, and it's probably going to draw more money off the sidelines," said Robert Pavlik, senior portfolio manager at Slatestone Wealth Llc in New York.
S&P 1500 airlines index <.SPCOMAIR> gained about 3.7% as Delta Air Lines Inc
Advancing issues outnumbered decliners by a 3.92-to-1 ratio on the NYSE and by a 3.36-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new lows, while the Nasdaq recorded 69 new highs and nine new lows.
(Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.