U.S. Stocks Rebound on Strong Economic Data and Sector Gains

U.S. stocks rebound as upbeat economic data lifts Wall Street. Solid job growth and rising service activity boosted confidence, leading to broad gains across major sectors including tech, airlines, and biotech.

The Dow Jones Industrial Average climbed 225.76 points (0.5%) to 47,311.00. The S&P 500 gained 24.74 points (0.4%) to close at 6,796.29, while the Nasdaq Composite rose 151.16 points (0.7%) to finish at 23,499.80.

Economic Growth Strengthens Market Sentiment

Investor optimism returned after Tuesday’s selloff, which was driven by valuation concerns. Fresh economic data helped reverse the mood.

The ADP employment report showed that private-sector jobs increased by 42,000 in October, following a 29,000 decline in September. This growth signaled renewed strength in the labor market.

In addition, the Institute for Supply Management (ISM) reported that U.S. services activity expanded again in October. The services PMI rose to 52.4, up from 50 in September, showing the highest reading since February. A score above 50 indicates growth, suggesting the economy remains resilient.

Tech, Airlines, and Biotech Drive Gains

Airline stocks led the rebound, with the NYSE Arca Airline Index soaring 5.8%. Biotech stocks also performed well as the NYSE Arca Biotechnology Index jumped 3.1%.

Tech-related stocks joined the rally. The Philadelphia Semiconductor Index advanced 3%, and the NYSE Arca Computer Hardware Index climbed 3.1%, reflecting investor confidence in technology-driven sectors.

Gold stocks rose alongside higher gold prices, while housing and software stocks traded slightly lower.

Global Markets and Bond Movement

In Asia, most markets closed lower. Japan’s Nikkei 225 Index fell 2.5%, and South Korea’s Kospi dropped 2.9%. However, European markets ended higher, with the FTSE 100 up 0.6%, Germany’s DAX up 0.4%, and France’s CAC 40 rising 0.1%.

Meanwhile, U.S. Treasury yields increased after the release of the economic reports. The 10-year Treasury yield rose 6.8 basis points to a one-month high of 4.15%, showing a shift away from bonds toward equities.

Outlook for Investors

Analysts believe the latest data confirms steady economic growth, which could support stock prices in the near term. However, the rise in bond yields may limit future gains if investors worry about potential interest rate hikes. For now, optimism over jobs and services growth is helping Wall Street regain momentum.

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