Wall Street Rallies, Dow Jones Up By More Than 600 Points
U.S. stocks just had what is being viewed as its best day ever. It seems that all over Wall Street, fears about a possible global economic slump that will be spurred on by China has been assuaged, enough for trading to start again in a big way. Part of the reason is that some investors are expecting that the U.S. Federal Reserve will not be raising interest rates the following month, thereby making U.S. stocks look like a steal.
The Dow Jones industrial average managed to finish trading 3.95% higher, representing an increase of 619.07 points, the biggest gain it has actually experienced since 2008. Meanwhile, the NASDAQ composite also posted a gain of 4.24%, showing a gain of 191.05 points to bring up its value to 4,697.54.
Tech companies like Apple (AAPL), Amazon (AMZN) and Google (GOOGL) all led the aggressive advance of U.S. stocks Wednesday, reports Reuters. Apple’s stock price, for one, was up by 5.73% to $109.69. Meanwhile, Google posted a gain of 7.72%, leading Goldman Sachs to raise its rating of the stock from a “neutral” to a “buy.” Meanwhile, Amazon also posted a increase of 7.38%.
The technology index climbed up by 5.3%, leading the advance of all 10 major sectors in the S&P 500 as they all managed to finally move out of correction territory. These included health care, consumer discretionary, staples and financials. The S&P 500 was up by 3.9% to 1,940.51.
CNBC reports that the companies in the 10 S&P 500 sectors had managed to acquire a total capitalization of $640 billion on Wednesday. However, collectively, they have actually lost about $268 billion just this week. Moreover, they were also down by as much as $1.3 trillion just during the last week and a half.
Some traders thought U.S. stocks would rally then take a plunge after what happened on Tuesday. However, stocks remained strong this time around. The International Business Times reports that the gains may also be due to China receiving a new stimulus package worth $22 billion from the People’s Bank of China.