The major U.S. stock indices experienced a robust recovery, with the Nasdaq leading the charge
The major averages were firmly positive. The Nasdaq surged 340.88 points (1.8%) to 19,621.68, the S&P 500 jumped 73.92 points (1.3%) to 5,942.47 and the Dow climbed 339.86 points (0.8%) to 42,732.13.The strength on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following recent weakness.
In U.S. economic news, the Institute for Supply Management released a report showing manufacturing activity contracted at a slower rate in the month of December. The ISM said its manufacturing PMI inched up to 49.3 in December from 48.4 in November, although a reading below 50 still indicates contraction. With the unexpected increase, the manufacturing PMI reached its highest level.
Technology stocks helped lead the rebound on Wall Street, as reflected by the particularly strong gain posted by the Nasdaq. Computer hardware and semiconductor stocks turned in best performances, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index surging by 3.1% and 2.8%. Commercial real estate stocks were considerably strong , resulting in a 1.4% gain by the Dow Jones U.S. Real Estate Index. Oil producer, utilities and housing stocks also saw significant strength, while gold stocks notably moved to the downside along with the price of the precious metal.
Asia-Pacific stocks turned in a mixed performance. China's Shanghai Composite Index tumbled by 1.6%, while South Korea's Kospi surged by 1.8%. the major European markets all moved to the downside on the day. While the French CAC 40 Index slumped by 1.5%, the German DAX Index slid by 0.6% and the U.K.'s FTSE 100 Index fell by 0.4%.
In the bond market, treasuries moved modestly lower over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.1 basis points to 4.596% after hitting a low of 4.539%.
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