US stocks reversed Tuesday’s losses as solid economic data and rising oil prices helped to temper investors’ pessimism about the pace of the economic recovery.
Wall Street’s blue-chip S&P 500 index closed 0.9 per cent higher for the day on Wednesday. The gains were broad-based, with energy stocks and growth-sensitive sectors such as financials and industrials the biggest risers. The technology-heavy Nasdaq Composite moved up 0.8 per cent.
The advances came as Federal Reserve data showed that US industrial production continued to increase in August, despite a sharp slowdown in growth due to the impact of Hurricane Ida. Separate data from the Bureau of Labor Statistics also showed the first monthly drop in import prices since last October, lending support to the view that the recent jump in inflation will be temporary.