Close Update: Wall Street Comeback Fueled by Rally in Tech and Banking Sectors

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A broad-based rally on Wall Street Wednesday gave the Dow Jones Industrial Average and S&P 500 its biggest one-day gains since April and lifted the Russell 2000 within a point of its all-time high.

Gains were concentrated in the financial and beaten-down tech sector, but consumer discretionary and industrial stocks also posted out-sized gains, as did energy shares with the help of higher oil prices and a weaker dollar.

Stocks were cautiously higher before the open until a sizeable uptrade was set in motion by assurances from the European Central Bank that Mario Draghi's hawkish remarks on Tuesday -- which sent the euro to a one-year high and EU bond yields surging -- were "misjudged" by global financial markets. As a result of ECB jawboning, the euro retreated and U.S. equities shot higher, fuelled by bargain-hunting in tech stocks.

An unexpected drop in pending home sales kept the short-covering intact, and the pressure on the dollar as central bankers from Canada and the UK raised the odds for higher rates. This raised long-term bond yields and fuelled a bid for banking stocks.

Damage control by the ECB did little to help Euro-zone bourses which all closed in the red. The UK's FTSE-100 led decliners with losses attributed to especially hawkish comments from Bank of England governor Mark Carney. Sterling rallied to its highest level since the UK general election, while gilt yields shot up more than 6 basis points after Carney pointed out that "removal of stimulus would be necessary as spare capacity erodes."

Here's where the markets stood at the close:


Dow Jones Industrial Index was up 155.74 points (+0.68%)

S&P 500 was up 21.31 points (+0.88%)

Nasdaq Composite Index was up 87.79 points (+1.43%)


FTSE 100 was down 0.63%

Nikkei 225 was down 0.47%

Hang Seng Index was down 0.61%

Shanghai China Composite Index was down 0.56%


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Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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