Wall St rises with economic hopes; bank stocks jump
By Caroline Valetkevitch (Reuters) - U.S. stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery
By Caroline Valetkevitch
(Reuters) - U.S. stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery.
Bank stocks powered the day's advance, with the S&P 500 financial index <.SPSY> leading gains among major sectors. The index rose nearly 10% over the past two sessions for its biggest two-day increase since April 8-9.
JPMorgan Chase & Co
After-the-bell on Wednesday, the head of JPMorgan's corporate and investment banking division said second-quarter revenues are on track to be more than 50% higher than the same period last year.
Continued easing of lockdowns, optimism about an eventual COVID-19 vaccine and massive U.S. stimulus have been driving the market's recent gains. On Wednesday, Walt Disney Co
"It's all about liquidity and the hopes that the economy will eventually do well," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"The rally will continue, but I don't think it will continue without pullbacks," he said, noting that weak second-quarter earnings could give investors a "reality check."
Tech-related shares underperformed the broader market on Wednesday after leading the recent rally.
The Dow Jones Industrial Average <.DJI> rose 553.16 points, or 2.21%, to 25,548.27, the S&P 500 <.SPX> gained 44.36 points, or 1.48%, to 3,036.13, and the Nasdaq Composite <.IXIC> added 72.14 points, or 0.77%, to 9,412.36.
Amid the recent gains, U.S. tensions with China have cast a cloud on markets.
President Donald Trump said Tuesday that Washington would announce its response to China's planned national security legislation on Hong Kong before the end of the week. Secretary of State Mike Pompeo said Wednesday that Hong Kong no longer warrants special treatment under U.S. law as it did when it was under British rule, potentially a big blow to its status as a major financial hub.
Tech-related shares are among the most sensitive to Chinese growth, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute in St. Louis.
"If the market is going to go higher from here, you're going to have to have broader participation, but you are going to need those large-cap tech companies to be along for the ride because they make up such a large portion of the benchmark," Samana said.
Also on Wednesday, the Federal Reserve's Beige Book report showed that U.S. businesses continued to be hammered by the effects of the novel coronavirus epidemic into the middle of May.
Advancing issues outnumbered declining ones on the NYSE by a 3.81-to-1 ratio; on Nasdaq, a 2.21-to-1 ratio favored advancers.
The S&P 500 posted seven new 52-week highs and no new lows; the Nasdaq Composite recorded 41 new highs and 10 new lows.
Volume on U.S. exchanges was 12.86 billion shares, compared to the 11.33 billion average for the full session over the last 20 trading days.
(Reporting by Caroline Valetkevitch; Additional reporting by Medha Singh and Susan Mathew in Bengaluru; Editing by Leslie Adler)
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.