Stocks Move Higher as Investors Pivot after Broad Sell-Off
NEW YORK (AP) — Stocks moved broadly higher on Wall Street Wednesday as investors pivoted to riskier holdings a day after taking shelter from the latest salvos in the ongoing trade war between the U.S. and China.
Investors snapped up technology, industrial and bank stocks. Encouraging overseas developments helped paint a more stable economic picture, despite the ongoing trade war. Politicians in Britain are seeking a less chaotic exit from the European Union and political tensions in Hong Kong have eased.
Chipmakers, which have been at the mercy of trade war volatility, did much of the heavy lifting for the technology sector. Intel rose 2% and Nvidia rose 2.3%. Apple rose 1.2%.
Banks rose broadly as bond yields climbed. JPMorgan Chase and PNC Financial both rose 1%. Higher bond yields allow banks to charge more interest on loans.
Industrial companies were also among the biggest gainers. Honeywell rose 1.9% and United Technologies rose 1.8%.
Investors moved away from safe-play holdings, such as utilities and consumer product makers, which lagged the market.
Bond prices fell. The yield on the 10-year Treasury note rose to 1.49% from 1.46% late Tuesday.
KEEPING SCORE: The S&P 500 rose 0.7% as of 10 a.m. Eastern Time. The Dow Jones Industrial Average rose 170 points, or 0.7%, to 26,290. The Nasdaq rose 1%.
OVERSEAS: Asian stocks moved broadly higher. The Hang Seng in Hong Kong surged 3.9% as word spread that the government would withdraw an extradition bill that had set off three months of protests in the region.
Stocks in Europe moved broadly higher following the latest developments in Britain’s plans to exit the European Union. Britain’s parliament will attempt to defy Prime Minister Boris Johnson and his plans to pull out of the EU on Oct. 31 with or without a withdrawal agreement. Leaving the EU without a deal that covers trade and other issues could result in economic chaos for Britain and complicate trade with member nations in the EU.
DISSAPOINTING DRUMSTICKS: Tyson Foods fell 4.8% after the meat producer slashed its 2019 profit forecast because of commodity costs and a fire at a beef processing plant. The company and its competitors are all facing higher costs for animal feed such as corn because flooding delayed the planting season.
BAG HANDOVER: Tapestry rose 3.7% after CEO Victor Luis resigned from the upscale handbag maker less than a month after it warned investors about a profit slump. The company has been struggling with its Kate Spade brand, which it bought in 2017. It also owns the Coach brand.
By AP reporter Damian J. Troise