“Wall Street racked up its biggest one-day gain in four years on Wednesday as fears about China’s economy gave way to bargain hunters emboldened by expectations the U.S. Federal Reserve might not raise interest rates next month,” Noel Randewich reports for Reuters.
“Led by Silicon Valley stalwarts Apple, Amazon and Google, the surge put the brakes on a six-day losing streak that saw the S&P 500 surrender 11 percent,” Randewich reports. “In a sign that a faltering Chinese economy and slumping global financial markets could affect U.S. monetary policy, New York Fed President William Dudley said the prospect of a September rate hike seemed “less compelling” than it was just weeks ago. All 10 major S&P 500 sectors jumped, led by a dizzying 5.3 percent jump in the technology index .SPLRCT, its largest one-day rise since 2009.”
“Some of the late-day rally was driven by short-term traders, including many who had bet the market would fall and rushed to cut their losses, said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio,” Randewich reports. “‘A lot of people were anticipating the last half of the day would roll over and fall off and that hasn’t happened,’ Matousek said. ‘You could see the buying accelerating at mid-day and people saying ‘I’m wrong,’ and starting to cover their shorts.'”
Apple Inc. (AAPL) shares surged 5.74% to close at $109.69.
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MacDailyNews Take: Up and down and up we go!