Upbeat data brings investors back after Trump slump
U.S. stocks rose as upbeat economic data emboldened investors to return to the market on Thursday, a day after Wall Street suffered its worst selloff in eight months following a political crisis involving President Donald Trump.
Reports that Trump had tried to intervene in an ongoing federal investigation cast a shadow on his presidency and the future of his pro-growth agenda.
Wall Street rebounded after the Philadelphia Federal Reserve said its business activity index unexpectedly rose in May after declining for the past two months. Weekly unemployment data also pointed to strength in the labor market.
“Even if we have a big, prolonged mess in Washington, it’s not going to necessarily hurt the economy,” said Tony Roth, chief investment officer at Wilmington Trust in Wilmington, Delaware.
“As long as the economy holds up, I think the market is going to brush off what is going on in Washington.”
At 11:09 a.m. ET, the Dow Jones Industrial Average (DJI) was up 45.66 points, or 0.22 percent, at 20,652.59, the S&P 500 (SPX) was up 8.1 points, or 0.34 percent, at 2,365.13 and the Nasdaq Composite (IXIC) was up 38.40 points, or 0.64 percent, at 6,049.63.
Investors saw an opportunity to pick up beaten down stocks.
“I’m not concerned, just yet, that we’re on the cusp of a major breakdown in the market. From a very short term perspective this is a very good buying opportunity,” said Paul Nolte, portfolio manager at Kingsview Asset Management LLC in Chicago, Illinois.
The S&P 500 financials (SPSY) and technology (SPLRCT) sectors, which were the worst hit on Wednesday, rebounded to give the biggest boost to the broader index.