Wall Street rallied on Wednesday, driven by a stronger-than-expected expansion in services activity for May, easing recent fears of an economic slowdown. The ISM survey reported the highest monthly growth in service provider sentiment since August 2023, with significant increases in business activity and new orders.
- Nasdaq 100 Index: Soared 1.6% to a record high of 18,940 points.
- Tech and Semiconductor Stocks: Boosted market gains, with the “Magnificent Seven” tech companies hitting a combined market value of $15 trillion. The iShares Semiconductor ETF (SOXX) had its best day in three months.
- S&P 500 Index: Rose 0.9% to 5,335 points; small caps up 1.2%, blue chips flat.
- Commodities: Gold, oil, and natural gas rebounded, rising 1.2%, 1.5%, and 5%, respectively.
- Bitcoin: Gained 1.2%, marking its fifth consecutive positive session.
- Bank of Canada: Cut interest rates by 25 basis points to 4.75%, signaling easing monetary policy as inflation slows.
Notable Stock Movers:
- Hewlett Packard Enterprise (HPE): Up 13% on quarterly results.
- CrowdStrike (CRWD): Up 10.4%.
- ASML Holding (ASML): Up 9% on new machine deliveries to Taiwan Semiconductor (TSM).
This rally underscores strong market confidence amid robust service sector growth and strategic monetary adjustments.