Stocks rose sharply on Wednesday on the back of better-than-expected economic data, which bolstered optimism over the recovery from coronavirus-led shutdowns.
The Dow Jones Industrials leaped 527.72 points, or 2.1%, to close Wednesday at 26,269.89. Wednesday’s gain put the Dow on pace for its third consecutive gain.
The S&P 500 added 42.05 points, or 1.4% to 3,122.87. Wednesday’s gains led the Dow to a three-day winning streak while the S&P 500 notched its first four-day winning streak since early February.
Data compiled by LPL Financial showed the S&P 500 posted its largest 50-day rally in history. The data also showed stocks were higher 100% of the time six and 12 months after the previous largest rallies on record.
The NASDAQ Composite gained 74.54 points to 9,682.91.
Stocks poised to benefit from the economy reopening rose broadly on Wednesday. American, Delta and United Airlines all gained more than 5.6%. JPMorgan Chase, Wells Fargo and Bank of America also climbed at least 4.6% each.
Meanwhile, shares of companies that surged during stricter stay-at-home orders lagged. Amazon rose just 0.2% and Netflix slid 1.3%. Shopify dropped 2.4%.
Market sentiment was also lifted after ADP and Moody’s Analytics reported private payrolls fell by another 2.76 million in May. The ADP number was far less than the 8.75-million estimate.
The reason for the wide disparity was not immediately clear. Data from the Institute for Supply Management showed the U.S. services sector contracted less than expected, rebounding from an 11-year trough.
Prices for the 10-Year Treasury plummeted, raising yields to 0.75% from Tuesday’s 0.68%. Treasury prices and yields move in opposite directions.
Oil prices tailed off nine cents to $36.72 U.S. a barrel.
Gold prices fell $33.80 to $1,700.20 U.S. an ounce.