U.S. stocks surge nearly 3%, as China rebound sparks global rally
Investing.com -- U.S. stocks rose broadly, as a late rebound on Chinese equity markets spurred a rally throughout global markets following Monday's closures due to the Labor Day holiday.
The Dow Jones Industrial Average surged nearly 400 points, erasing all of Friday's losses, while the NASDAQ Composite index and the S&P Composite index each gained more than 2% on a bullish day for stocks. The Dow added 390.30 or 2.42% to 16,492.68, while the NASDAQ rose 128.01 or 2.73% to 4,811.93 amid sizable gains from Apple Inc (NASDAQ:AAPL). On Wednesday, the tech giant is scheduled to unveil its iPad pro set at a highly-anticipated press conference.
The S&P 500, meanwhile, jumped 48.19 or 2.51% to 1,969.41, as all 10 sectors closed in the green. Stocks in the Financials, Technology and Industrials sectors led, each gaining more than 2.35%.
The top performer on the Dow was General Electric Company (NYSE:GE), which surged 0.92 or 3.81% to 24.92 after the multinational conglomerate received approval from European and U.S. antitrust regulators to complete the purchase of French company Alstom 's (PARIS:ALSO) power unit on Tuesday. The deal is valued at approximately $17 billion. The worst performer was Chevron Corporation (NYSE:CVX), which gained 0.08 or 0.10% to 76.75. All 30 components of the Dow closed higher on the session.
The biggest gainer on the NASDAQ was Regeneron Pharmaceuticals Inc (NASDAQ:REGN), which soared 41.37 or 8.27% to 541.36 amid positive results from a survey regarding its drug aimed at lowering high cholesterol. The worst performer was Netflix Inc (NASDAQ:NFLX), which fell 4.24 or 4.29% to 94.55. It marked the online streaming network's seventh straight decline, as concerns mount that the stock may be overvalued. Shares in Netflix (NASDAQ:NFLX) are still up roughly 50% this year.
The top performer on the S&P 500 was TECO Energy Inc (NYSE:TE) which surged more than 24% to a yearly-high at 26.33 before falling slightly back at the close. On Friday after the bell, TECO Energy (NYSE:TE) announced a merger with Emera Inc. for $10.4 billion. Netflix was also the worst performer on the S&P 500 just behind Yahoo! Inc (NASDAQ:YHOO), which fell 0.54 or 1.71% to 31.04.
Investors appear reluctant to execute any major trades before the Federal Open Market Committee completes its two-day September meeting on Sept. 17. Analysts believe there is a 50-50 chance the FOMC could raise its benchmark Federal Funds Rate for the first time since 2006.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,460 to 683 margin.
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