Major stock indexes on Wall Street have returned the lost positions in the morning on the background of robust economic data and the recovery of oil prices, which helped to mitigate investors' concerns about the global economic downturn.
Data for June from Markit showed a steady growth of business activity in the US service sector, which has helped the most rapid expansion of new orders since the beginning of 2016, however, growth remains weak in comparison with the post-crisis trend, helped by a slowdown in job creation the third consecutive month in June. Business expectations for the year ahead have also continued to soften, while service providers showed the lowest level of optimism since October 2009. The seasonally adjusted PMI index in the services sector rose to 51.4 from 51.3 in May, and signaled a further modest expansion of activity.
In addition, the index of business activity in the US service sector, which is calculated by the Institute of Supply Management (ISM), has improved markedly in June, reaching 56.5 compared with 52.9 in the previous month. According to the forecast, the index value would grow to 53.3. The ISM said that the expansion of activity in the service sector has recorded the 77th consecutive month.
In focus were also reports of the last Fed meeting, which showed that the views of policy makers about economic prospects and interest rates are divided. However, despite the differences, Fed officials agreed that it was justified to wait for additional data before making a decision on further action. For a considerable period of time this year the authorities were preparing for another rate increase, but now investors see almost no chance that the Fed will raise rates in July, after having been released weak data on employment and the UK voted in favor of withdrawal from the EU.
Most of the DOW index components ended the session in positive territory (21 of 30). Outsider were shares of E. I. du Pont de Nemours and Company (DD, -1,88%). Most remaining shares rose Merck & Co. Inc. (MRK, 2,13%).
Almost all sectors of the S & P showed an increase. conglomerates (-0.7%) sectors fell most. The leader turned out to be the health sector ( 1.0%).
At the close:
Dow 0.44% 17,918.35 77.73
Nasdaq 0.75% 4,859.16 36.26
S & P 0.53% 2,099.72 11.17