Stocks moved higher on Wall Street in afternoon trading Wednesday, with gains in technology companies and retailers outweighing losses elsewhere in the market.
The rally, which had the major stock indexes on track for more record highs, came as investors focused on the latest batch of mostly solid corporate earnings and weighed the latest developments in the virus outbreak that originated in China.
Health officials raised hopes that the spread of the virus is peaking after new cases dropped for a second straight day. Worries about the economic impact of the outbreak fueled a wave of selling that erased the market’s gains in January. But traders have set aside their jitters over the outbreak this month. The S&P 500 index is now up 4.6% so far this month.
Technology stocks led the broad gains. Micron Technology climbed 4.4% and Qualcomm rose 2.4%.
Companies that rely on consumer spending, including Amazon and Nike, also did well. Dish Network and Comcast were among the big gainers in the communication services sector. Crude oil jumped 2.5% and lifted energy companies, including Hess and ConocoPhillips.
Bond prices fell. The yield on the 10-year Treasury rose to 1.63% from 1.59% late Tuesday.
The pickup in bond yields weighed on homebuilder shares. Lennar fell 1.5%. Mortgage rates tend to track the 10-year Treasury yield, so an increase in the yield means less attractive mortgage rates.
Utilities, health care and real estate companies lagged the market in another sign that investors were more confident and shifting money into investments that carry more risk.
KEEPING SCORE: The S&P 500 index rose 0.5% as of 1:53 p.m. Eastern time. The Dow Jones Industrial Average gained 210 points, or 0.7%, to 29,486. The Nasdaq climbed 0.7%. The Russell 2000 index of smaller company stocks picked up 0.6%. Markets in Europe and Asia rose.
VIRUS UPDATE: Health officials said Wednesday that the number of new cases of the coronavirus in China dropped for a second straight day. The outbreak has infected over 45,000 people worldwide and killed more than 1,100.
Meanwhile, Chinese President Xi Jinping promised tax cuts and other aid to industry as the ruling Communist Party tries to limit the mounting damage to the economy.
TRAVEL TIDE RISES: Companies focusing on travel made some of the strongest gains. United Airlines rose 2%. Wynn Resorts climbed 3.3%. Royal Caribbean gained 3.4%.
Cruise lines, hotels and others have been more sensitive than other companies to the spread of the virus in China.
