After Biggest Selloff in Months Wall Street Bounces Back
Wall Street seems to have rebounded from its biggest selloff in more than eight months, with major indexes recovering some of yesterday's steep losses. The markets panicked at the possible impact the burgeoning political situation in the White House could have on the economy.
Thursday, May 18, 2017 - 00:00
Strong economic data offered support, but some investors were still anxious after reports the US President tried to interfere with an investigation into former National Security Adviser Michael Flynn's ties with Russia. A special prosecutor has now been appointed to investigate the whole affair.
Stocks extended gains late in the session after showing modest increases earlier in the day.
Equity investors are carefully watching events that could help or hurt Trump's ability to implement proposals such as tax reform and deregulation as at least some of the stock market's post election rally has been thanks to those proposals.
At 2:30 p.m. ET, the Dow Jones Industrial was up 117.45 points, or 0.57 percent, to 20,724.38, and the S&P 500 had gained 15.7 points, or 0.67 percent, to 2,372.73. The Nasdaq Composite had added 54.93 points, or 0.91 percent, to 6,066.17.
Earlier in the day the Philadelphia Federal Reserve said its business activity index unexpectedly rose in May after declining for the past two months. Weekly unemployment data also pointed to strength in the labor market.
Indexes briefly pared gains after a speeding car crashed into pedestrians in New York City's Times Square, killing one and injuring 22 people. The incident did not appear to be an act of terrorism, witnesses, police and news media said.
The S&P 500's biggest drivers today were the Healthcare and the Financial sectors with 0.8 percent gains. The financial and technology sectors, which were the worst hit on Wednesday. Advancing issues outnumbered declining ones on the NYSE by a 1.23-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers.
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