Wall Street closes day with substantial gains
|- Dow Jones closes above 26K mark.
- IBM lifts technology index to new all-time highs.
- Energy shares recover as oil correction loses momentum.
After not being able to hold on to daily gains and closing slightly lower on Tuesday, major equity indexes in the U.S. gained traction on Wednesday and finished the day significantly higher on optimism surrounding the fourth quarter earnings results.
Following an upward revision to target price, IBM shares gained around 3% on Wednesday, lifting the S&P 500 Information Technology Sector (SPLRCT), last year's best performing sector, to a fresh record high on the back of a 1.6% daily rise. On the other hand, despite a more than 2% drop seen in Goldman Sachs shares amid weak trading revenues, the S&P 500 Financials Sector (SPSY) closed the day 0.85% higher.
Meanwhile, the S&P 500 Energy Sector (SPNY), which underperformed since the start of the week due to the corrective slide seen in crude oil prices, closed the day 0.85% higher with the West Texas Intermediate edging higher toward the $64 handle.
Commenting on today's strong performance, “the positive earnings revision is the strongest we’ve seen in several years. It’s been hockey-stick growth up since the tax bill passed,” Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta, told Reuters.
The Dow Jones Industrial Average added 323.10 points, or 1.25% percent, to close above the 26K mark for the first time at 26,115.96. The broader S&P 500 rose 26.28 points, or 0.95%, to 2,802.70 and the Nasdaq Composite gained 74.37 points, or 1.03%, to 7,298.06.
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