By Kim Hjelmgaard, USA TODAY
Stocks rose for a second straight day Wednesday as a report
that economic growth was smaller than originally estimated helped boost
the bond market.
The Dow Jones industrial average index jumped 150 points, or 1.0%, to 14,910, according to preliminary calculations. The Standard & Poor's 500 index gained 15, or 0.9%, to 1,603 and the Nasdaq composite index rose 28, or 1.0%, to 3,376.
stampede out of U.S. government bonds reversed course Wednesday after
the government reported that the U.S. economy grew at an annual rate of
1.8% in the first three months of the year, significantly lower than the
previous estimate of 2.4%.
yield on the 10-year Treasury note, a benchmark for many kinds of
loans, fell to 2.53% from 2.61% late Tuesday. The yield has risen
sharply over the last week as traders sold bonds in anticipation of the
Fed winding down its bond-buying program. It was 2.19% on June 18, the
day before the Fed outlined its plans.
The price of gold Wednesday fell up to 4.2% to $1,224.18 an ounce, the lowest level since Aug. 24, 2010, says Bloomberg News
Benchmark oil for August delivery was up 10 cents to $95.41 a barrel in electronic trading on the New York Mercantile Exchange.
Tuesday, the Dow rose 0.7% to 14,760.31. The S&P 500 index rose 1%
to 1,588.03. The Nasdaq composite added 0.7% to 3,347.89.
stocks closed higher, boosting investor confidence as the global market
continues to pick itself up. In Great Britain, the FTSE 100 rose 1% to
close at 6,165 and Germany's DAX jumped 1.7% to close at 7,941. France's
CAC 40 advanced about 2.1% to finish the day at 3,726.
Europe 600 index closed higher by 1.9% to end at 285 as investors pushed
the benchmark higher for the second day in a row.
Japan's Nikkei 225 ended down 1% at 12,834.01. The Shanghai composite index declined 0.8% to 1,943.43.