US stocks rally amid data

US stocks finished noticeably higher on Wednesday as investors pored through a slew of economic data.

The Dow Jones Industrial Average jumped 527.24 points, or 2.05 per cent, to 26,269.89. The S&P 500 increased 42.05 points, or 1.36 per cent, to 3,122.87. The Nasdaq Composite Index rose 74.54 points, or 0.78 per cent, to 9,682.91, Xinhua reported.

Ten of the 11 primary S&P 500 sectors ended higher, with industrials and financials up 3.91 per cent and 3.83 per cent, respectively, leading the gains. Health care dipped 0.2 per cent, the only declining group.

Private companies in the US shed 2.76 million jobs in May as the COVID-19 fallout continues to ripple through the country and weighed on the labor market for another month, US payroll data company Automatic Data Processing (ADP) reported on Wednesday.

The report utilizes data through May 12, and does not reflect the full impact of COVID-19 on the overall employment situation, said ADP.

Meanwhile, economic activity in the US non-manufacturing sector contracted in May for the second consecutive month, said the Institute for Supply Management (ISM). The ISM non-manufacturing index registered 45.4 per cent in May, following the April reading of 41.8 per cent.

Wednesday’s market rally followed a solid day on Wall Street with the 30-stock average closing up more than 260 points.

“Now, as the US economy endures the recession in real time, the stock market may be looking ahead again — pricing-in an economic recovery that could take hold in the second half of this year, or later,” Mitch Zacks, CEO at Zacks Investment Management, said in a note on Wednesday, while commenting on the recent market rally amid the COVID-19 shock.

Investors also closely monitored nationwide unrest over the death of African-American George Floyd as riots on top of the pandemic could cause lasting economic scars.