Tue, 27 Oct 2020

Strong economic data pushes Wall Street to higher close

Xinhua/Big News Network
01 Oct 2020, 08:13 GMT+10

NEW YORK, New York, Sept. 30 (Xinhua/Big News Network) -- U.S. stocks finished higher on Wednesday as Wall Street digested a slew of newly-released economic data.

The Dow Jones Industrial Average jumped 329.04 points, or 1.20 percent, to 27,781.70. The S&P 500 increased 27.53 points, or 0.83 percent, to 3,363.00. The Nasdaq Composite Index rose 82.26 points, or 0.74 percent, to 11,167.51.

Nine of the 11 primary S&P 500 ended higher, with health care and financials up 1.68 percent and 1.24 percent, respectively, leading the gainers. Industrials and energy, however, struggled.

U.S.-listed Chinese companies traded mostly higher, with nine of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.

The U.S. economy contracted at an annual rate of 31.4 percent in the second quarter amid mounting COVID-19 fallout, 0.3 percentage point higher than the previous estimate in late August, the U.S. Commerce Department said in its third and final estimate released Wednesday.

The upward revision with the latest estimate primarily reflected an upward revision to personal consumption expenditures that was partly offset by downward revisions to exports and to non-residential fixed investment, according to the department's Bureau of Economic Analysis.

U.S. private sector employment increased by 749,000 jobs from August to September, U.S. payroll data company Automatic Data Processing (ADP) reported Wednesday.

"In September, the majority of sectors and company sizes experienced gains with trade, transportation and utilities; and manufacturing leading the way. However, small businesses continued to demonstrate slower growth," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement.

Despite their recent rebounds, Wall Street's major averages suffered losses for the month.

For the month, the Dow fell 2.3 percent, the S&P 500 sank 3.9 percent and the Nasdaq Composite shed 5.2 percent, marking the first monthly decline for each benchmark since March.

The U.S. dollar was mixed Wednesday. The euro softened to 1.1723. The British pound was stronger, rising to 1.2920. The Japanese yen strengthened to 105.44, while the Swiss franc advanced to 0.9206.

The Canadian dollar firmed to 1.3322. The Australian dollar was little changed at 0.7160. The New Zealand dollar rallied to 0.6616.

In London, the FTSE 100 fell 0.54 percent. The German Dax declined percent, while the Paris-based CAC 40 gave up 0.59 prcent.

On Asian markets, the Australian All Ordinaries plummeted 132.20 points or 2.15 percent to 6,009.30.

Japan's Nikkei 225 lost 353.98 points or 1.50 percent to close at 23,185.12.

China's Shanghai Composite shed 6.31 points or 0.20 percent to 3,218.05.

Going again the trend, the Hang Seng in Hong Kong gained 183.52 points or 0.79 percent to 23,459.05.

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