- US stocks gained on Wednesday, extending the market’s winning streak to four days amid renewed optimism around a swift economic recovery.
- Mortgage applications leaped 4% last week according to data released Wednesday morning. The report follows positive retail sales data as yet another hint of economic recovery.
- Oil traded lower after big gains on Tuesday. West Texas Intermediate crude slid as much as 3.1%, to $37.21 per barrel.
- Watch major indexes update live here.
US stocks extended their winning streak to four days on Wednesday as investors looked past lingering coronavirus risks and bet on a swift economic rebound.
While confirmed COVID-19 cases are spiking throughout the US, equities have steadily gained on hints that the economy can avoid a second-wave shutdown. Mortgage applications surged 4% last week and are up 21% from the year-ago period, revealing a strong bounce-back for the housing market and US consumers.
New home construction data further pointed to housing-market stabilization. Home construction gained 4.3% in May after tumbling 26% in April.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday:
- S&P 500: 3,133.97, up 0.3%
- Dow Jones industrial average: 26,363.34, up 0.3% (73 points)
- Nasdaq composite: 9,944.14, up 0.5%
Read more: Wall Street’s best US and international stock-pickers have tripled their clients’ money since 2010. The duo break down 5 future-proof companies that will keep investors ahead of the pack through 2030.
Federal Reserve Chair Jerome Powell offered metered positivity toward the nation’s outlook in Tuesday Senate testimony. The central bank chief said that, although “significant uncertainty” remains, the economy likely bottomed out in the second quarter and is slowly turning higher.
“First was the shutdown and we’ve seen what that would produce … we may be reaching a bottom on that now,” Powell said. “We would expect to see large numbers of people … coming back to work during this second period, call it the bounce back or the beginning of the recovery.”
Retail sales data released Tuesday also propped up investor optimism. Spending leaped 17.7% in May, more than double economists’ consensus estimate. The release served as the latest harbinger of investors sought-after V-shaped rebound.
Oil traded slightly lower through the session after tearing higher in the previous session. West Texas Intermediate crude fell as much as 3.1%, to $37.21 per barrel, before paring some losses. International benchmark Brent crude sank 2.3%, to $40.03 per barrel, at intraday lows.
The mild gain follows a 527-point increase for the Dow on Tuesday, driven by a retail-sales beat and Bloomberg’s report that the White House is considering a $1 trillion infrastructure initiative. Popular reopening stocks including American Airlines, Carnival Cruises, and Gap all swung higher as investors maintained hopes for a full reopening arriving soon.
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