US stocks rise as chipmaker shares rally

US stocks closed higher as major chipmaker shares posted solid gains, underpinning the market.

The Dow Jones Industrial Average on Wednesday was up 39 points, or 0.15 per cent, to 26,218.13. The S&P 500 increased 6.16 points, or 0.21 per cent, to 2,873.40, Xinhua news agency reported.

The Nasdaq Composite Index rose 46.86 points, or 0.60 per cent, to 7,895.55.

Of the 11 primary S&P 500 sectors, materials and technology outperformed while energy and consumer staples struggled.

Shares of major US chipmakers rallied, contributing to the market. Advanced Micro Devices surged 8.49 per cent, leading the advancers in the Nasdaq. Shares of both Applied Materials and Micron Technology gained more than 3 per cent at market closing, also among the best performers.

However, the market gains were capped as investors also digested a slew of soft economic data.

Total nonfarm private employment in the US increased by 129,000 in March, payroll data company Automatic Data Processing (ADP) reported on Wednesday. That was the weakest showing in 18 months and missed market consensus.

Meanwhile, US non-manufacturing index fell to 56.1 in March from 59.7 in February, data from the Institute for Supply Management showed. The figure represents continued growth in the non-manufacturing sector, but at a slower pace.

--IANS

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