US stocks jumped on Wednesday, helped by gains in technology and financial shares and optimism that Greece may be closer to reaching a deal with creditors. All 10 major S&P 500 sectors ended higher, with the technology index up 1.6 percent and leading sector gainers. The S&P financial index, which has risen with the prospect of higher interest rates, climbed 1.4 percent and turned positive for the year as benchmark US bond yields extended recent gains.
The day's gains also pushed the Dow back into positive territory for the year and snapped four straight sessions of losses in the bluechip index. Shares of Goldman Sachs rose 2 percent to $213.13, giving the Dow its biggest boost. "The biggest positive for this market now is financials," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
Overseas, the chairman of euro zone finance ministers said a cash-for-reform deal with Athens was still possible in time for their June 18 meeting, with just a few issues remaining to be solved, but Greek counter-proposals were not yet satisfactory. "The notion that they're going to either kick the can down the road some more or actually come up with some kind of mutually acceptable deal is ... an avoidance of a short-term negative," said Uri Landesman, president of Platinum Partners in New York. Netflix was up 3.7 percent at $671.10 and hit a record intraday high of $692.79, a day after shareholders approved a massive increase in the number of shares the company is authorised to issue, the first step toward a possible stock split.
The Dow Jones industrial average rose 236.36 points, or 1.33 percent, to 18,000.4, the S&P 500 gained 25.05 points, or 1.2 percent, to 2,105.2 and the Nasdaq Composite added 62.82 points, or 1.25 percent, to 5,076.69. Concern the Federal Reserve could raise rates sooner rather than later has weighed on the broad stock market. The Fed has said it will raise rates only if data points to a recovery in growth in the US economy, which had come to a standstill in the first quarter.
HCC Insurance Holdings shares rose 36.4 percent to $77.35 after Tokio Marine Holdings said it had agreed to buy the US specialty insurer for $7.5 billion. Advancing issues outnumbered declining ones on the NYSE by 2,207 to 849, for a 2.60-to-1 ratio on the upside; on the Nasdaq, 2,032 issues rose and 731 fell for a 2.78-to-1 ratio favouring advancers. The S&P 500 posted 35 new 52-week highs and four new lows; the Nasdaq recorded 167 new highs and 34 new lows. About 6.5 billion shares changed hands on US exchanges, above the 6.0 billion daily average for June so far, according to BATS Global Markets.
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