Information technology stocks lead Wall Street higher.
The U.S. stock market advanced on Wednesday, as rebounding technology shares propelled the major indices sharply higher.
All of Wall Street’s major benchmarks closed in positive territory, with the Dow Jones Industrial Average (NYSEARCA:DIA) climbing 227.48 points, or 0.9%, to 27,136.91.
The broad S&P 500 Index (NYSEARCA:SPY) advanced 0.7% to close at 3,00.90. Most of the 11 primary sectors finished higher, with health care leading the rally. Communication services, information technology and utilities also outperformed the broader index.
The technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) jumped 1.1% to settle at 8,169.68.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) declined on Wednesday, as calm returned to Wall Street. The so-called “investor fear index” bottomed at 14.61 on a scale of 1-100 where 20-25 represents the historic average. It would eventually settle down 3% at 14.74.
In economic data, U.S. producer prices rose faster than expected in August, alleviating concerns that the trade war was placing downward pressure on corporate profitability.
The producer price index (PPI) rose 0.1% in August and 1.8% annually, the Labor Department reported Wednesday. So-called core producer prices, which strip away food and energy costs, climbed 0.3% on month and 2.3% annually. All figures were higher than expected.
The Final Word: A new era of ultra-loose monetary policy is upon us, and this could bode well for stocks in the short term. The ECB is expected to cut interest rates on Thursday and announce a new round of quantitative easing. Next week, the Federal Reserve is also expected to lower its benchmark interest rate for the second time in as many meetings.