Stocks gain as commodities rebound; Dow adds triple digits.
U.S. stocks bounced back Wednesday from one of their worst selloffs of the quarter, as investor sentiment improved in the wake of a brewing political crisis in Italy.
Dow Jones industrials (NYSEARCA:DIA) jumped 306.33 points, or 1.3%, to 24,667.78. The blue-chip index plunged more than 400 points on Tuesday in the first session back from Memorial Day.
The broader S&P 500 Index (NYSEARCA:SPY) advanced 1.3% to 2,724.01, with all 11 primary sectors reporting gains.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) rose 0.9% to finish at 7,462.45.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply in mid-week trading, falling more than 11% to 14.99. The so-called “fear index” spiked more than 28% on Tuesday as Italy’s political crisis gripped stocks.
In commodities, oil prices bounced back from a week of heavy losses as profit-takers swept in to buy contracts at a discount. U.S. West Texas Intermediate (WTI) futures gained 2.1% to $68.11 a barrel on the New York Mercantile Exchange. ICE Brent crude futures rose 2.3% to $77.11 a barrel.
On the data front, U.S. gross domestic product (GDP) expanded 2.2% annually in the first quarter, lower than the previous estimate of 2.3%, the Commerce Department reported Wednesday. Core personal consumption expenditures (PCE) rose 2.3% annually compared with forecasts calling for 2.5%.
The Final Word: Politics will continue to influence investor sentiment in the wake of corporate earnings season. Monetary policy will also play a role as the Federal Reserve prepares to raise interest rates next month for the second time this year.