At the close of trade, the Dow Jones Industrial Average index rose 367.63 points, or 1.34%, to 27,847.66. The S&P 500 index advanced 74.42 points, or 2.21%, to 3,443.44. The tech-heavy Nasdaq Composite Index added 430.21 points, or 3.85%, to 11,590.78.
The rally on Wall Street came as traders reacted to the results of the U.S. elections on Tuesday, which have yet to reach a definitive conclusion. Democratic candidate Joe Biden is currently in the lead in the race for the presidency, with the latest projections giving the former vice president 248 electoral college votes. Biden is also leading in Nevada and Michigan, which would give him the 270 electoral college votes needed to unseat President Donald Trump.
ECONOMIC NEWS: US ISM Services Index Slows In October- US service sector activity slowed by more than expected in the month of October, according to a report released by the Institute for Supply Management on Wednesday. The ISM said its services PMI dipped to 56.6 in October from 57.8 in September, although a reading above 50 still indicates growth in the service sector. The bigger than expected decrease by the headline index came as the new orders index slid to 58.8 in October from 61.5 in September and the business activity index dropped to 61.2 from 63.0. The report said the employment index also fell to 50.1 in October from 51.8 in September, suggesting employment in the service sector was nearly unchanged.
Meanwhile, the ISM said the prices index jumped to 63.9 in October from 59.0 in September, indicating a notable acceleration in the pace of price growth. The ISM released a separate report on Monday showing growth in U.S. manufacturing activity accelerated by much more than expected in the month of October. The purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity.
US Trade Deficit Narrows In September-- US trade deficit narrowed to $63.9 billion in September from a revised $67.0 billion in August, a report released by the Commerce Department on Wednesday. The narrower deficit came as the value of exports jumped by 2.6% to $176.4 billion, while the value of imports rose by 0.5% to $240.2 billion. The spike in exports partly reflected a sharp increase in exports of soybeans as well as a notable increase in exports of capital goods. Meanwhile, increases in imports of passenger cars and capital goods were partly offset by steep drops in imports of cell phones and other household goods and industrial supplies and materials. The report said the goods deficit narrowed to $80.7 billion in September from $83.8 billion in August, while the services surplus was nearly unchanged at $16.8 billion.
US ADP Private Sector Employment Growth Eases In October-- US private sector employment rose by 365,000 jobs in October after spiking by an upwardly revised 753,000 jobs in September, according to a report released by payroll processor ADP on Wednesday. The report said employment in the service-providing sector spiked by 348,000 jobs, while employment in the goods-producing sector edged up by 17,000. Employment at mid-sized businesses climbed by 135,000 jobs, and employment at large and small businesses increased by 116,000 jobs and 114,000 jobs, respectively. Employment is expected to increase by about 600,000 jobs in October after climbing by 661,000 jobs in September. The unemployment rate is expected to edge down to 7.7% from 7.9%.
CURRENCY NEWS: Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.1630 to highs near US$1.1740 and was near US$1.1720 in late US trade. The Aussie dollar rose from lows near US70.60 cents to highs near US72 cents and was near US71.75 cents in late US trade. And the Japanese yen firmed from 105.06 yen per US dollar to JPY104.14 and was near JPY104.50 in late US trade.
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