 "Wall Street gains on strong services sector data; Dow, S&P rise over 1%")
US stocks rose sharply on Monday as a rebound in US services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States.
A non-manufacturing activity index jumped to a reading of 57.1 last month, the highest since February, from 45.4 in May, according to a report from the Institute for Supply Management (ISM).
"These numbers are important, and it helps to explain the increase in consumer confidence," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the dollar. Earlier, Chinese stocks jumped more than 5%.
A slew of upbeat US data recently, including a record rise in monthly payrolls, has powered the Nasdaq to all-time highs and has driven the S&P 500 up roughly 44% from its March bottom.
The gains came despite a record surge in new Covid-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.
Over the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak there.Unofficially, the Dow Jones Industrial Average rose 459.47 points, or 1.78%, to 26,286.83, the S&P 500 gained 49.66 points, or 1.59%, to 3,179.67 and the Nasdaq Composite added 226.02 points, or 2.21%, to 10,433.65.
Online retail giant Amazon.com crossed $3,000 for the first time and provided the biggest boost to the S&P 500 and the Nasdaq.
Tesla Inc shares also jumped, rising for the fifth session as JPMorgan bumped up its price target for the electric carmaker's stock following better-than-expected quarterly deliveries.
Uber Technologies Inc climbed after theride-sharing company agreed to buy food-delivery app Postmates Inc in a $2.65-billion all-stock deal.
A non-manufacturing activity index jumped to a reading of 57.1 last month, the highest since February, from 45.4 in May, according to a report from the Institute for Supply Management (ISM).
"These numbers are important, and it helps to explain the increase in consumer confidence," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
Also Read
A slew of upbeat US data recently, including a record rise in monthly payrolls, has powered the Nasdaq to all-time highs and has driven the S&P 500 up roughly 44% from its March bottom.
The gains came despite a record surge in new Covid-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.
Over the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak there.Unofficially, the Dow Jones Industrial Average rose 459.47 points, or 1.78%, to 26,286.83, the S&P 500 gained 49.66 points, or 1.59%, to 3,179.67 and the Nasdaq Composite added 226.02 points, or 2.21%, to 10,433.65.
Online retail giant Amazon.com crossed $3,000 for the first time and provided the biggest boost to the S&P 500 and the Nasdaq.
Tesla Inc shares also jumped, rising for the fifth session as JPMorgan bumped up its price target for the electric carmaker's stock following better-than-expected quarterly deliveries.
Uber Technologies Inc climbed after theride-sharing company agreed to buy food-delivery app Postmates Inc in a $2.65-billion all-stock deal.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%