The Dow Jones Industrial Average rebounded Wednesday after a string of negative trading sessions this September.
The blue chip index rose about 236.82 points, or nearly 0.7%, to 34,814.39. The S&P 500 ticked up 0.8% to 4,480.70. The Nasdaq Composite traded up 0.8% to 15,161.53.
“Despite concerns about the recent downshift in economic and business cycle momentum, we remain confident that strong growth lies ahead and activity is bound to re-accelerate,” wrote JPMorgan strategist Dubravko Lakos-Bujas, in a note Wednesday. “We remain positive on the equity outlook, and expect S&P 500 to reach 4,700 by end of this year and surpass 5,000 next year on better than expected earnings.”
Some bullish economic news released before the bell Wednesday helped stabilize investor sentiment. The New York Fed’s Empire Index, a measure of manufacturing in the region, came in at 34.3 for September, way ahead of the 18 consensus estimate from FactSet. It marked an acceleration from August.
Energy stocks, which have been popular bets among investors banking on a big economic recovery, gained as WTI crude rose. The Energy Select Sector SPDR ETF gained nearly 3.7%. Exxon added 3.3%.
Rising U.S. Treasury yields helped lift bank stocks, with Citigroup up 2.4% and Morgan Stanley 1.1% higher. Higher interest rates typically boost bank profits.
Industrial names closely linked to the economic recovery also gained, with General Electric and Caterpillar higher.
Microsoft shares gained 1.6% after announcing a dividend increase and a sizable $60 billion share repurchase program.
Casino stocks like Las Vegas Sands and Wynn Resorts traded in the red again on Wednesday. Those names took a big hit Tuesday as the government of