US stocks extend rally, add to overnight strong gains on upbeat earnings
Major US equity indices build on overnight strong up-move and witnessed yet another positive opening on Wednesday,
Better-than-expected corporate earnings results and upbeat forecast by the social media giant Facebook was seen as one of the key factors behind the optimistic mood during the opening hour of trade.
Bullish traders also took cues from upbeat ADP report, which showed that private sector employers added 227K new jobs in October as against 189K anticipated and previous month's downwardly revised reading of 218K.
With most of the bad news already priced in the market, the recent up-move over the past few days might be seen as an indication that the near-term base might have already formed and some month-end position adjustment might continue to fuel the ongoing positive momentum.
At the time of writing this report, the Dow Jones Industrial Average rallied around 275-points to levels beyond the 25,100 mark and the broader S&P 500 Index added nearly 35-points to move back above the 2700 level.
Meanwhile, tech-heavy Nasdaq Composite Index outperformed the markets and climbed over 140-points, with bulls looking to build on the momentum further beyond the 7,300 handle.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
