Stocks rebound on Wednesday even as geopolitical risks linger.
U.S. stocks advanced Wednesday, as investors shrugged off North Korea’s threat to exit a planned summit with the United States next month.
The large-cap S&P 500 Index (NYSEARCA:SPY) advanced 0.4% to 2,722.46, with the majority of sectors contributing to the gains.
The Dow Jones Industrial Average (NYSEARCA:DIA) climbed 62.52 points, or 0.3%, to close at 24,768.93.
Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) added 0.6% to finish at 7,398.30.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply on Wednesday, giving back some of the previous session’s gains. The so-called “fear index” fell 8.2% to close at 13.43.
In economic data, U.S. industrial production rose faster than expected in April, highlighting a gradually improving economy in the wake of a first-quarter slowdown.
Output at U.S. factories, mines and utilities facilities rose 0.7% from March, the Federal Reserve reported Wednesday. Analysts had expected a gain of 0.6%.
Separately, the Commerce Department reported a marked slowdown in housing starts last month. Groundbreaking fell by 3.7% in April to a seasonally adjusted annual rate of 1.287 million units.
Building permits, which are a bellwether of future construction plans, declined 1.8% to a 1.352 million-unit pace.
The Final Word: Geopolitics is back in focus after North Korea threatened to walk away from next month’s summit with the United States. The rift was sparked by anger over joint U.S.-South Korean military drills.