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U.S. stocks rally amid solid economic data

​NEW YORK
2018-10-04 08:48

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U.S. stocks rallied on Wednesday as market sentiment was lifted by a batch of solid economic data.

The Dow Jones Industrial Average advanced 54.45 points, or 0.20 percent, to 26,828.39. The S&P 500 rose 2.08 points, or 0.07 percent, to 2,925.51. The Nasdaq Composite Index was up 25.54 points, or 0.32 percent, to 8,025.09.

Caterpillar and Boeing led the winners in the Dow. Shares of the companies climbed 2.20 percent and 1.53 percent, respectively, at the close.

Major U.S. bank stocks rose as Treasury yields hit record high on Wednesday, boosted by the better-than-expected economic data.

The S&P 500 hovered around the flatline, as losses in the utilities and consumer staples sectors offset gains in the financial sector.

Apple shares closed about 1.2 percent higher, contributing to the Nasdaq.

On the economic front, U.S. private sector employment increased by 230,000 jobs from August to September, according to research institute ADP's National Employment Report on Wednesday.

The reading was well above the market expectations of 185,000 and the August revised rate of 168,000.

The ADP National Employment Report provides a monthly snapshot of U.S. nonfarm private sector employment based on actual transactional payroll data.

Meanwhile, the U.S. Institute for Supply Management non-manufacturing index rose to 61.6 in September from the August reading of 58.5, beating market forecasts. A reading above 50 indicates expansion in the service sector while a reading below 50 signals contraction. 
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