A jump in Boeing shares lifted Wall Street on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country.
Boeing Co rose 5.5 per cent and was the top boost to the blue-chip Dow Jones index after billionaire investor Daniel Loeb’s Third Point said it took a stake in the planemaker.
Microchip Technology Inc surged 10.5 per cent after the chipmaker raised its forecast for current-quarter sales and profit as it begins making up for lost production due to the pandemic.
Data on Wednesday showed signs of stabilization in the domestic labor market after the ADP National Employment Report said private employers laid off another 2.76 million workers, lesser than an expected 9 million job losses.
The data comes ahead of the more comprehensive jobs report due on Friday.
Supporting the mood further was the Institute for Supply Management’s (ISM) reading, which showed US services industry activity pushed off an 11-year low in May.
The S&P 500 and Nasdaq have risen in seven of the past eight sessions, and are now about 8 per cent and 2 per cent below their respective mid-February record highs, as encouraging economic data, unprecedented stimulus measures and the lifting of lockdowns have raised bets on a post-pandemic economic recovery.
Markets have largely looked past brewing Sino-US tensions and protests in the United States over the death of an unarmed black man at the hands of the police.
US protesters ignored curfews overnight as they vented their anger, but there was a marked drop in the violence that prompted President Donald Trump to threaten to deploy the military.
“Investors are reassured that there won’t be any actual major upheaval in the country … (and they) believe the Sino-US relationship can survive this most recent wobble,” Connor Campbell, financial analyst at SpreadEx said.
“Combine that with