Stocks extend rally as tech-driven industries rally.
The U.S. stock market extended its relief rally on Wednesday, as surging technology shares lifted the benchmark indices.
All of Wall Street’s major averages finished in positive territory, with the Dow Jones Industrial Average (NYSEARCA:DIA) climbing 115.97 points, or 0.5%, to 25,648.02.
The broad S&P 500 Index (NYSEARCA:SPY) gained 0.6% to close at 2,850.96. Eight of 11 primary sectors finished higher, led by communication services and information technology companies.
Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) surged 1.1% to 7,822.15.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) continued lower on Wednesday, as calm returned to Wall Street. VIX, commonly known as the “fear index,” fell 84% to 16.55 on a scale of 1-100 where 20 represents the historic average.
In economic data, U.S. retail sales declined unexpectedly in April after a much better than expected March. Receipts at retail stores fell 0.2% month-on-month, the Department of Commerce reported Wednesday.
Separately, the Federal Reserve said industrial production declined 0.5% in April, defying expectations for a flat reading. The capacity utilization rate declined sharply to 77.9% from 78.5% previously.
Meanwhile, U.S. housing market conditions improved significantly in May, according to the National Association of Home Builders (NAHB). The NAHB housing market index improved to 66 in May from 63 in April.
“Builders are busy catching up after a wet winter, and many characterize sales as solid, driven by improved demand and ongoing low overall supply,” NAHB Chairman Greg Ugalde said in the official report. “However, affordability challenges persist and remain a big impediment to stronger sales.”
The Final Word: With the United States and China exchanging tariff blows, Wall Street’s bull market could be on its last leg. Trump’s top trade negotiator has already admitted that talks with China have reached “a complete stalemate.”