US growth aces China fears as Dow recovers all losses
Oil prices rose 10% as commodities joined the international rebound in financial markets.
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Stocks on Wall Street rocketed for a second day as investors buried fears about China’s growth and celebrated their own economy’s performance.
The Dow Jones Industrial Average erased its losses for the week, which had been triggered by signs of a sharp deceleration in China and concerns about the pace of global growth.
Financial markets worldwide also rebounded, taking commodity prices higher as well.
Oil prices soared more than 10% to their biggest percentage gain in six years.
The Dow jumped 369.26 points, or 2.3%, to close at 16,654.77. Coupled with Wednesday’s 619-point surge, blue chips are now up 1.2% for the week.
The S&P 500 gained 47.15 points, or 2.4%, to 1987.66, while the Nasdaq Composite added 115.17 points, or 2.45%, to 4812.71.
More data confirmed the strength of the US recovery. Gross domestic product, the broadest measure of goods and services produced, expanded 3.7% in the second quarter, well ahead of expectations and up from an initial estimate of 2.3% growth.
The data showed upward revisions to consumer spending and business investment, while a separate report showed initial jobless claims fell more than expected last week, suggesting the labour market remains healthy.
Oil prices staged a rebound, rising 10% to $US42.56 a barrel in New York. That helped spur a recovery in oil and gas stocks, with energy companies in the S&P 500 gaining 4.9%.
The pan-European Stoxx Europe 600 closed 3.5% higher. The Shanghai Composite Index led Asian markets higher, closing up 5.3% after five consecutive days of losses.
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Nevil Gibson
Fri, 28 Aug 2015
Fri, 28 Aug 2015
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US growth aces China fears as Dow recovers all losses
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