By Alex Veiga

Stocks closed higher on Wall Street for a second straight day Wednesday following a sharp drop at the beginning of the week.

The S&P 500 rose 0.8% and is now on pace for a weekly gain. Technology stocks, banks and companies that rely on consumer spending helped drive the benchmark index's advance. Energy stocks also rose as the price of U.S. crude oil marched 4.3% higher. Utilities and real estate stocks were among the decliners.

The market’s swift rebound from Monday’s sharp sell-off reflects investors’ tug-of-war as they factor in signs of economic growth as the economy reopens, strong corporate earnings and a recovering job market against the potential risks of rising inflation and the more contagious delta variant of COVID-19.

The stock market has begun looking past the pandemic and toward what the recovery looks like, said Bill Northey, senior investment director at U.S. Bank Wealth Management.

"Now there is some degree of question: what is the pace, the degree of that economic recovery from here?” Northey said.

The S&P 500 gained 35.63 points to 4,358.69. The Dow Jones Industrial Average rose 286.01 points, or 0.8%, to 34,798, and the Nasdaq composite added 133.08 points, or 0.9%, to 14,631.95. The Dow and Nasdaq have also recouped their losses from Monday's sell-off.

Traders continued to bid up small company stocks. The Russell 2000 index outpaced the other major indexes with a gain of 39.74 points, or 1.8%, to 2,234.04.

The S&P 500, a benchmark for many index funds, has managed to keep gaining ground and notched new highs over the last few weeks despite bouts of choppy trading. What’s helped push stocks higher the last two days is better-than-expected results from big corporations.

Summer is typically a slow time for Wall Street, with investors and traders taking vacations and holding steady until later in the year. The dominant thing that will drive the market, with the exception of big economic reports, will be how well companies do versus expectations.

Dow component Coca-Cola rose 1.3% Thursday after the company raised its full-year forecast and reported better-than-expected results. Fast food chain Chipotle Mexican Grill jumped 11.5% for the biggest gain in the S&P 500 after the company also reported much better than expected results after the closing bell Tuesday.

Not all earnings were positive. Netflix fell 3.3% after reporting its worst slowdown in subscriber growth in eight years.

Earnings season will kick into high gear next week, when more than 100 members of the S&P 500 will report their quarter results. So far earnings season has been strong, with more than 80% of the S&P 500 beating analysts' forecasts according to FactSet. That's despite the already high expectations that Wall Street has had for corporations.

Bond yields continued to recover from their sharp fall earlier in the week. The yield on the 10-year Treasury note rose to 1.29%, up from 1.20% the day before. The 10-year note's yield had fallen into the teens on Monday on concerns that the delta variant of the coronavirus might impact economic growth globally.

Among the big winners Thursday, Morgan Stanley rose 3.6%, chipmaker Lam Research gained 5% and Occidental Petroleum vaulted 7.1%. Cruise operators, big losers in Monday’s market slide, rallied again. Norwegian Cruise Line vaulted 10.1%, Carnival gained 9.4% and Royal Caribbean rose 5.4%.

Updated on July 21, 2021, at 5:10 p.m. ET.

Share:
More In Business
ULTA Beauty To Spend $50 Million On Diversity Initatives
In efforts to help support black-owned brands. Ulta Beauty says it will make a commitment to not only give these brand shelf space but also help them navigate the ins and outs of growing a business. Last week, the beauty retailer announced in order to reach those goals, the company will spend $50 million on diversity and inclusion programs, including an accelerated program to mentor entrepreneurs of color. CEO of Ulta Beauty, Dave Kimbell, joined Cheddar to discuss more.
Economist Sees Six Rate Hikes in 2022 After High January PPI Number
Inflation remains hot as the January PPI has increased by 1 percent, twice what analysts had been expecting with a jump of 9.7 over the year. Beth Ann Bovino, the U.S. chief economist, for S&P Global Ratings, joined Cheddar News to discuss the rapid pace of inflation alongside higher wages, predicting the Federal Reserve will act quickly and forcefully this year. "They haven't changed their forecast, yet, that's gonna come out soon. But we expect that a March rate hike is basically pretty much baked in the cake," she said. "We think six rate hikes in total for 2022."
U.S Chamber of Commerce Hosts Virtual Event 'Developing the Black-Owned Business Ecosystem'
For black history month, Cheddar is highlighting black business leaders who are driving the need for representation forward. On February 10, the U.S. Chamber of Commerce hosted an event called 'Developing the Black-Owned Business Ecosystem.' The virtual event was organized under the lobbying group's two initiatives -- the Equality of Opportunity Initiative, and the Coalition to Back Black Businesses. The event highlighted the developments needed to develop more black-owned businesses in the U.S. Dr. Anthony Wilbon, Dean of the School of Business at Howard University, joined Cheddar News' Closing Bell to discuss his experience as a speaker at the event.
Real Estate Key to Closing Wealth Gap Even as Black Spending Power Hit $1.6 Trillion
Black spending power reached a record $1.6 Trillion in a 2021 report from the University of Georgia Selig Center for Economic Growth. Ayesha Selden, certified financial planner, breaks down why real estate is the key to closing the racial wealth gap and how Black Americans are using social media to improve financial literacy. "If we look at home ownership as being a primary driver of wealth, when you look at the equity that Americans have in their homes, that equity can be used to buy additional assets like other rental properties. That equity can be used to educate our children," Selden said, noting that lower rates of home ownership meant Black Americans tend to incur more debt on average for their student loans.
Does Owning Crypto Really Make Daters More Desirable?
A new survey from Etoro suggests that talking crypto might actually help Americans on the dating scene find love...or at least land another date. The survey found that 74% of respondents would be more interested in going on a second date with a person that pays the bill in Bitcoin. Callie Cox, Etoro's U.S. investment analyst, joined Cheddar News to discuss.
Load More