Wall Street rebounded on Wednesday as technology and consumer staples helped fuel the risk-on rally.

The S&P 500, which briefly surpassed the 2,800 level in the previous trading session, rose 0.5 per cent to 2,789.09 — aided by a 0.9 per cent advance in consumer staples and a 0.8 per cent gain in technology stocks, while telecoms was the only sector in the red, down 0.4 per cent.

The Dow Jones Industrial Average climbed 0.6 per cent to 25,941.57, still shy of the 26,000 level it crossed on Tuesday, while the Nasdaq Composite rose 0.5 per cent to 7,258.19.

Wall Street’s advance came on the back of upbeat quarterly updates from Bank of America and US Bancorp.

The moves also came ahead of the release of the Federal Reserve’s Beige Book, which provides anecdotal evidence on the health of the economy and remarks from Fed speakers including Charles Evans president of the Chicago Fed, Loretta Mester head of the Cleveland Fed and Robert Kaplan head of the Dallas Fed.

Investors also appeared to shrug off concerns about a US government shutdown as Congress faces a Jan 19 deadline to pass a long or short-term spending bill to keep the government funded. Indeed, Republican aides said on Tuesday that the most likely outcome this week was for a short-term package that will continue current levels of spending until around February 16

Elsewhere, yields on the US 10-year Treasury were little changed at 2.555 per cent. Yields move inversely to price. Meanwhile, the dollar index, a gauge of the buck against a basket of peers, rose 0.2 per cent to 90.58.

Get alerts on Federal Reserve Bank of Chicago when a new story is published

Copyright The Financial Times Limited 2020. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article