Among blue-chip companies, big winners included Apple, Boeing, Cisco Systems and United Technologies, which all rose more than 3%.
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The decline was the latest in a roller-coaster start to the year for the United States stock market.
Some market watchers say the recent bout of turbulence may not be over.
Analysts said the string of data all beat market expectations and thus rekindled concerns of surging inflation, which had helped to send the US equities plunging to two-year lows last week.
In recent years, investors put their money in riskier stocks since they were earning so little in interest at the bank or from bonds.
The Dow jumped by 1.0%, the S&P 500 index by 1.3% and the Nasdaq Composite by 1.9% the day the music should have died when the US Bureau of Labor Statistics (BLS) confirmed that inflation was indeed lifting.
Indices are weighted by the market value of the bonds, which must have a maturity of one month or greater to be eligible for index inclusion.
“We think we’re going to be volatile for a few more trading days at least, as the market sorts out what’s really been going on”, Haworth said. Those investors had thought that markets would remain calm, but their bet went bad, causing them to lose lots of money.
Teva Pharmaceuticals Industries shot up 7.5% after respected US billionaire investor Warren Buffett, head of Berkshire Hathaway, took a stake in the generic drug maker.
The S&P 500 is up 111.65 points, or 4.3 percent.
According to finviz data, GOOGL stock’s volatility for the week is measured at 3.42%, while for the month it is maintained at 2.36%. That includes several drops that were far larger than anything the market endured last year. The Dow Jones Small-Cap Growth TSM Index closed at 9,449.10 for a gain of 187.07 points or 2.02%. Applied Materials ( AMAT ) and Baidu ( BIDU ) also rose above that key support, and in strong volume.
“It is still too early to tell if a pick-up in inflation is long-lasting and as a result of the economy running into capacity constraints”.
U.S. West Texas Intermediate crude for March delivery rose 47 cents at $61.81 a barrel. The price producer index, meanwhile, rose 0.4 percent in January, in line with expectations. The Trump administration has been pushing defense spending aggressively higher.
But investors are getting comfortable with the idea that growth is sufficient enough to withstand the expected rate increases the Fed has projected this year as well as signs of rising inflation, Arone said. Disney agreed to buy Fox’s movie and television studios and some cable and international TV businesses in December for $52.4 billion. Heating oil fell 2 cents to $1.84 a gallon. Natural gas lost 1 cent to $2.59 per 1,000 cubic feet. IBD has an earnings options strategy that can let you reap the rewards from post-earnings gains while minimizing your losses.
Japan’s benchmark Nikkei 225 rose 1.5% to 21,464.98 and Australia’s S&P/ASX 200 climbed 1.2% to 5,909.00.
Gold rose $10.70 to $1,326.40 an ounce.
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The pan-European FTSEurofirst 300 index .FTEU3 of leading regional shares rose 1.11 percent to 1,491.71. The FTSE 100 in Britain picked up 0.6 percent.
