The US markets, despite giving up some gains over the course of the trading day, managed to closed sharply higher on Wednesday. The stocks extended their rally following recent up move owed to softening of President Donald Trump’s stance on Federal Reserve Chair Jerome Powell and President’s willingness to take a less confrontational approach to trade talks with China. Besides, Treasury Secretary Scott Bessent has indicated an opportunity for a big deal between the US and China, bolstering the sentiment on the bourses. However, some pullback came as traders remained cautious about recent volatility in the markets triggered largely by Trump's words.
On sectoral front, the NYSE Arca Computer Hardware Index spiked 4.0 percent led by strong buying interest in computer hardware stocks. Semiconductor, networking and software stocks also saw continued strength throughout the day, contributing to the surge by the tech-heavy Nasdaq. Meanwhile, considerable strength also has been seen in airline stocks, as reflected by the 2.4 percent jump by the NYSE Arca Airline Index.
Dow Jones Industrial Average jumped 419.59 points or 1.07 percent to 39,606.57, Nasdaq 407.63 points or 2.5 percent to 16,708.05, and S&P 500 shot up 88.10 points or 1.67 percent to 5,375.86.
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