Wall Street rebounds after severe sell-off

13:28, August 04, 2011      

Email | Print | Subscribe | Comments | Forum 

A trader works on the floor of the New York Stock Exchange in New York, the United States, on Aug. 3, 2011. U.S. stocks ended higher in very choppy trading on Wednesday, with the Dow Jones industrial average snapping an eight-day losing streak, as investors bought in after severe sell-off. (Xinhua/Shen Hong)

Wall Street closed higher on Wednesday amid slight positive economic data and economic concerns, with the Dow Jones industrial average snapping an eight-day losing streak.

The Dow Jones industrial average added 29.82 points, or 0.25 percent, to 11,896.44. The blue-chip index ended higher just after erasing a 1.4-percent morning drop, avoiding a nine-day plunge which hasn't been seen since 1978.

The Standard & Poor's 500 gained 6.29 points, or 0.50 percent, to 1,260.34. The Nasdaq Composite Index rose 23.83 points, or 0.89 percent, to 2,693.07.

Major averages extended their losses in morning session as investors worried about a slower economy amid lackluster data.

According to payrolls processor ADP, U.S. private employers added 114,000 jobs in July, better than average expectations.

However, a separate report from the Institute for Supply Management showed service industries expanded in July at the slowest pace since February 2010 as orders and employment cooled.

The index of non-manufacturing businesses decreased to 52.7 in July from 53.3 a month earlier, lower than the previous estimates.

The big reversal came in afternoon trading as some investors bought in after continuous sell off left the market oversold. Technology stocks led the way higher while the energy sector lagged.

Meanwhile, some investors believed that as signals showed that the economy was slowing down, the Federal Reserve will be very likely to push the third round of quantitative easing policy. The new incentive program will add up a lot of liquidity and definitely boost stock market.

Weak data also put oil prices down on Wednesday. Oil prices plunged 1.86 dollars, or 1.98 percent to settle at 91.93 dollars a barrel on the New York Mercantile Exchange.

At the same time, worries about the U.S. debt problems weighed on the dollar. The dollar index lost 0.67 percent to 74.01 on Thursday.



  • Do you have anything to say?
  • Wall Street rebounds after severe sell-off
  • Shooting special wedding photos at tourist site featuring Danxia landform in China's Fujian
  • "Giant Mermaid" on Alster River in Hamburg
  • Dancers perform during rehearsal of the classic ballet in Taipei
  • Storm alert as typhoon approaches
  • "Spidermen" clean windows in north China