Dow surges 236 points as investors overcome growth concerns to erase early losses
- The Dow soared more than 200 points on Wednesday, reclaiming a big portion of losses suffered during the previous session.
- The S&P 500 also finished higher, fronted by a climb in the energy sector as oil prices leapt.
- Industrial production in August returned to pre-pandemic levels, said the Federal Reserve.
The S&P 500's energy sector gained nearly 4%, outperforming the 10 other sectors tracked on the equity benchmark. Oil prices jumped, with West Texas Intermediate crude up 3.3% at $72.75 per barrel, extending gains after a larger-than-expected drawdown in weekly US oil stockpiles was reported Tuesday.
"Crude oil has been ripping higher on disrupted production leading to big declines in inventories," said Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors, in a note Wednesday. Oil production has been hampered by the recent Ida and Nicolas hurricanes.
Here's where US indexes stood at 4:30 p.m. on Wednesday:
- S&P 500: 4,480.88, up 0.85%34,814.13
- Dow Jones Industrial Average: 34,814.13, up 0.68% (236.56 points)
- Nasdaq Composite: 15,161.53, up 0.82%
Investors also received a better reading than anticipated for manufacturing activity in the New York region from the Empire State Manufacturing Survey for August and the Federal Reserve said industrial production returned to pre-pandemic levels last month.
The Fed's two-day policy meeting starts on September 21 and will feature its summary of economic projections, or the so-called dot-plot chart of interest-rate expectations.
Gold fell 0.7% to $1,791.08 per ounce. The yield on the US 10-year Treasury note rose to 1.31%.
Bitcoin gained 1.9% to $47,949.73.
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