NEW YORK (AP) — Wall Street experienced a rally today after positive reports on inflation and strong profits from companies like 3M. The S&P 500 had its best day in seven weeks, rising 1.1%. The Dow Jones Industrial Average jumped 1.6%, while the Nasdaq composite climbed 1%. This broad-based gain included Big Tech companies and smaller stocks, marking a shift from the recent trading trend where a divide between these two groups deepened. The Russell 2000 index saw a gain of over 10% for July. Treasury yields also eased after the latest inflation data, increasing expectations for future interest rate cuts.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. stocks are enjoying a unified rally today, wrapping up a turbulent week marked by significant market swings.
In afternoon trading, the S&P 500 was 1.3% higher following strong profit reports from companies like 3M. The Dow Jones Industrial Average saw a 1.8% increase, or 718 points, as of 2:12 p.m. Eastern time. The Nasdaq composite also rose by 1.2%.
Today’s gains were widespread, encompassing both Big Tech companies and smaller stocks. This contrasts with the previous week, where a clear division emerged between a small group of dominant stocks and the rest of the market.
Key players like Nvidia saw a rise in their stock prices, erasing earlier losses from the week. As old market leaders stumbled, previously neglected sectors of the market saw gains. The Russell 2000 index, for example, climbed 1.4%, outperforming the big stocks in the S&P 500 this month.
Industrial companies and other economy-linked businesses also saw a boost in their stock prices. Companies like Norfolk Southern reported strong profits for the latest quarter, leading to a jump in their stock price.
In another positive development, 3M reported better-than-expected profit and revenue for the latest quarter, driving its stock price up by 21.3%. Stocks also received a boost from the latest inflation update, which reinforced expectations of future interest rate cuts.
The 10-year Treasury yield fell following the inflation report, offering further support for stock prices. Winners on Wall Street included companies like Deckers Outdoors and Newell Brands, while DexCom experienced a drop in its stock price.
Stock markets in Europe and Asia also saw gains, with Japan being an outlier with a slight decline. Overall, the market is experiencing a positive trend, driven by strong earnings reports and favorable economic indicators.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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