Wall St. rebounds, fueled by energy stocks
By April Joyner NEW YORK (Reuters) - U.S. stocks rose on Wednesday, with the S&P 500 set to erase all its losses from Tuesday as signs of easing political turmoil in Italy emerged
By April Joyner
NEW YORK (Reuters) - U.S. stocks rose on Wednesday, with the S&P 500 set to erase all its losses from Tuesday as signs of easing political turmoil in Italy emerged.
Italy's 5-Star Movement party made a renewed attempt to form a coalition government and called for eurosceptic economist Paolo Savona to withdraw his candidacy as economy minister.
The Italian government's successful auction of five- and 10-year bonds also assuaged concerns about the country's ability to finance itself after a sell-off in Italian bonds on Tuesday resulted in the biggest one-day surge for two-year yields in 26 years.
Fears about instability in Italy had sent investors scurrying to safety assets on Tuesday. U.S. stocks took a beating, with the S&P 500 posting its first 1 percent drop in May, while the U.S. Treasury market had its best day since at least July 2011.
"The market is reversing what appears to be a knee-jerk reaction from yesterday," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "As people take a step back, it appears that the sell-off was overdone."
The Dow Jones Industrial Average <.DJI> rose 302.45 points, or 1.24 percent, to 24,663.9, the S&P 500 <.SPX> gained 34.81 points, or 1.29 percent, to 2,724.67 and the Nasdaq Composite <.IXIC> added 69.01 points, or 0.93 percent, to 7,465.61.
The Russell 2000 index of small-cap stocks <.RUT> hit an all-time high during Wednesday's session, buoyed by data confirming the strength of the U.S. economy. Small-cap U.S. companies generally have less international exposure than their large-cap counterparts.
Payroll processor ADP's monthly report showed U.S. private sector payrolls increased by 178,000 jobs in May. The Commerce Department revised its estimate of first-quarter gross domestic product growth slightly downward but estimated that U.S. GDP growth in the second quarter would rise above 3 percent annually.
The S&P energy index <.SPNY> jumped 3.2 percent and was on track for its biggest one-day gain in seven weeks.
Energy shares, which provided the biggest boost to the S&P 500, benefited from a 2.2-percent surge in U.S. crude oil prices. [O/R]
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Advancing issues outnumbered declining ones on the NYSE by a 4.48-to-1 ratio; on Nasdaq, a 2.78-to-1 ratio favored advancers.
The S&P 500 posted 28 new 52-week highs and two new lows; the Nasdaq Composite recorded 193 new highs and 28 new lows.
(Additional reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur and James Dalgleish)
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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.