“With the market returning to all-time highs, there’s sentiment out there that the economy will get better in the second half of the year,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “There are a number of gates in the way between now and 2021, but barring another COVID-like event, there should be a fairly robust return to growth.”
Nationwide protests over the death of an unarmed black man in police custody extended through their eighth night as protesters ignored curfews, but violence subsided after President Donald Trump threatened to deploy the military.
A spate of grim economic data was not as bad as economists feared, with ADP reporting much fewer private-sector job cuts in May than expected.
Market participants now await the US Labor Department’s more comprehensive May jobs report, which is expected to show unemployment soaring to a historic 19.7 per cent.
The Dow Jones Industrial Average rose 440.59 points, or 1.71 per cent, to 26,183.24, the S&P 500 gained 38.06 points, or 1.24 per cent, to 3,118.88 and the Nasdaq Composite added 75.11 points, or 0.78 per cent, to 9,683.48.
Of the 11 major sectors in the S&P 500, all but healthcare were in positive territory.
Boeing gave the biggest boost to the blue-chip Dow, its shares rising 10.4 per cent following news that billionaire investor Daniel Loeb’s Third Point had taken a stake in the company.
Lyft jumped 10.4 per cent after the ride-sharing platform reported rides increased 26 per cent in May.
Microchip Technology surged 12.5 per cent after the chipmaker raised its forecast for current-quarter sales and profit.
Teleconferencing firm Zoom Communications nearly doubled its annual sales expectations, but also reported a sharp rise in costs. Its shares were up 5.8 per cent.
Cosmetics maker Coty Inc’s rose 10.9 per cent after announcing it was in talks to collaborate on a beauty line with reality TV star Kim Kardashian West.
Campbell Soup beat earnings expectations and hiked its full-year forecast, but troubles meeting surging consumer demand sent its shares down 4.9 per cent.
Advancing issues outnumbered declining ones on the NYSE by a 3.62-to-1 ratio; on Nasdaq, a 2.33-to-1 ratio favoured advancers.
The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 89 new highs and three new lows.