Stocks rise on Wall Street after 3 days of losses
NEW YORK
INVESTORS’ jitters over emerging markets faded yesterday and US stocks rose for the first time in four days.
Global stock markets stabilised after three turbulent days when investors grew worried about growth in China and other emerging markets. The sell-off began last Thursday, when a survey for January showed that Chinese manufacturing was set to contract, dragging down stocks in Asia, Europe and the US. The slide continued on Friday as currencies in countries including Argentina and Turkey slumped. On Monday, Asian markets slumped, although the selling on Wall Street eased.
By yesterday, though, global markets regained their calm. In the US, earnings gains from big companies, including Pfizer, Comcast and DR Horton helped lift stock indexes. One area of disappointment, though, was Apple, whose weak revenue forecast pushed its stock to the biggest one-day loss in a year.
The stock market has slumped in January after a banner year in 2013 that sent the market up to record levels. Many investors believe that rally has yet to run its course.
“I tend to interpret the choppiness and downward movement in share prices so far this year as just a little bit of a stumble off the starting block,” said John Carey, a portfolio manager at Pioneer Investments. “This is a temporary situation.”
The Standard & Poor’s 500 index rose 10.94 points, or 0.6 per cent, to 1,792.50. The Dow Jones industrial average gained 90.68 points, or 0.6 per cent, to 15,928.56. The Nasdaq composite climbed 14.35 points, or 0.4 per cent, to 4,097.96.
Nine of the 10 sectors that make up the S&P 500 index rose. Health care and financial stocks were the two best-performing sectors. The technology sector was the only one to fall.
Financial markets in emerging economies stabilised yesterday.