US stocks post huge comeback; tech fuels gains
The S&P 500 closed up 1.1% on Wednesday after falling more than 1.5% in the morning. It’s the first time the benchmark US stock gauge erased an intraday drop that large to finish up 1% or more since October 13, 2022 – the day the current bull market started.
The Nasdaq 100 was up 2.2% following a similar daily pattern, while the Russell 2000 ended the day with a 0.3% gain.
The stock rally was mostly attributable to the technology sector. The S&P sector ETF advanced 3.4%, and First Solarwas the top performer with a 15.2% gain. This came after Tuesday night’s presidential debate. Solar companies like First Solar are expected to benefit from a Democratic administration that prioritizes the development of renewable energy.
Semiconductor stocks were also up. Super Micro Computer added 7.9%, Nvidia increased 8.2% and Broadcom rose 6.8%. The VanEck Semiconductor ETF was up 5.2%.
Conversely, consumer stapes and energy lost the most.
The core consumer price index for August was above forecasts. The odds of a half-point interest rate by the Federal Reserve in September were lower after the reading.
Two-year Treasury yields rose 4 basis points, while 10-year yields had a more muted increase. Oil futures rebounded after Tuesday’s sell-off, as both WTI and Brent rose more than 2%.
