US stocks rose on Wednesday, led by energy stocks, as the market’s comeback rally extended for a third day.
The Dow Jones Industrial Average rose 40 points. The S&P 500 gained 0.2%, down 0.1% from a record high. The Nasdaq Composite rose 0.2% after hitting a record high in the previous session. This was the Nasdaq’s first new high since April 29, as investors returned to big tech stocks.
Energy stocks like Exxon Mobil and Chevron rose as oil prices continued to rise. Brent crude topped $ 75 a barrel on Wednesday and hit a two-year high.
Many big tech names were green too. Tesla was up 3% while Netflix was up over 1%. Amazon, Facebook and Alphabet also traded higher.
The S&P 500 is up 2% this week, rebounding from a sell-off last week triggered by the Federal Reserve’s surprise turnaround in monetary policy. The central bank forecast significantly higher inflation for the year than before and announced two rate hikes in 2023.
Fed chief Jerome Powell testified in front of the House of Representatives Tuesday, which seemed to lift sentiment as he reiterated that inflationary pressures will be temporary.
“Powell outlined how the excess inflation would come from categories directly affected by the reopening,” said Ed Moya, senior market analyst at Oanda. “He found that there was an extremely strong demand and that the supply was caught flat.”
For June, the S&P 500 and the Nasdaq Composite are in the green, rising 1.2% and 4% respectively. However, the Dow is in the red for the month amid weakness from Caterpillar and JPMorgan.
Bitcoin staged an impressive comeback on Tuesday that continued on Wednesday. On Tuesday, the cryptocurrency temporarily fell below $ 30,000 and lost its profits for 2021. But Bitcoin ultimately made up for the entire 11% loss and ended the session in positive territory, according to Coin Metrics.
As of the last review, Bitcoin rose another 4% to over $ 34,000 on Wednesday.
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