U.S. Stocks, Dollar Rebound After Steep Selloff
By Akane Otani and Riva Gold
-- S&P 500 gains 0.4%
-- Stoxx Europe 600 slides 0.5%, Nikkei off 1.3%
-- WSJ Dollar Index rises 0.5%
U.S. stocks rose broadly Thursday, bouncing back from their worst session of the year.
Some of the sectors that were hit the hardest a day earlier were among the biggest gainers, including shares of financial and technology companies.
The Dow Jones Industrial Average added more than 150 points intraday before paring gains heading into the close, finishing up 56.09 points, or 0.3%, to 20663.02. The S&P 500 added 8.69 points, or 0.4%, to 2365.72 and the Nasdaq Composite rose 43.89 points, or 0.7%, to 6055.13.
Some traders said buyers were likely stepping in to take advantage of Wednesday's selloff, which sent the Dow industrials to their steepest one-day decline since September.
"A one-day move didn't cause any panic," said Mohit Bajaj, director of ETF trading solutions at brokerage WallachBeth Capital.
The Dow industrials got a boost Thursday from gains in shares of Wal-Mart Stores, which rose $2.42, or 3.2%, to $77.54 after the retailer posted its 11th straight quarterly increase in same-store sales. Apple shares climbed 2.29, or 1.5%, to 154.54 and were among the best performers in the blue-chip index.
A buoyant global economy and solid corporate earnings should help support markets, investors and analysts say, even as turmoil in Washington has raised concerns among some investors that the White House could struggle to push through proposals on tax cuts, deregulation and infrastructure spending.
Bets on such policy changes had helped stocks and the U.S. dollar climb after Election Day.
"I still continue to go back to the economy when I'm talking to clients. As long as the U.S. economy remains in a good foundation...that creates a supportive environment for equities," said Shannon Saccocia, head of asset allocation and portfolio strategy at Boston Private Wealth.
Data Thursday showed the number of Americans applying for first-time unemployment benefits fell last week for the third consecutive time, in a fresh sign of steady job creation.
The WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, added 0.4% after logging its biggest decline since March. The yield on the 10-year U.S. Treasury note climbed to 2.233% from 2.216% on Wednesday. Yields rise as bond prices fall.
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