WASHINGTON (dpa-AFX) - Following the lackluster performance seen in the
previous session, stocks moved sharply higher over the course of the trading day
on Wednesday. With the strong upward move, the S&P 500 closed above 5,600 for
the first time ever.

The major averages saw further upside going into the close, ending the day near
their highs of the session. The Nasdaq surged 218.16 points or 1.2 percent to
18,647.45, the Dow shot up 429.39 points or 1.1 percent to 39,721.36 and the S&P
500 jumped 56.93 points or 1.0 percent to 5,633.91.

The rally on Wall Street was partly due to strength among technology stocks, as
reflected by the notable advance by the tech-heavy Nasdaq, which also reached a
new record closing high.

The strength among tech stocks came after Taiwan Semiconductor (TSM) reported
its second quarter sales surged much more than expected.

Shares of Taiwan Semiconductor, which supplies chips for AI giants like Nvidia
(NVDA) and Apple (AAPL), spiked by 3.5 percent.

Stocks may also have benefitted from optimism about the outlook for interest
rates ahead of the release of closely watched consumer price inflation data on
Thursday.

Economists expect the annual rate of consumer price growth to slow to 3.1
percent in June from 3.3 percent in May, while the annual rate of core consumer
price growth is expected to hold at 3.4 percent.

During congressional testimony, Federal Reserve Chair Jerome Powell said more
'good data' would strengthen the central bank's confidence inflation is moving
sustainably toward its 2 percent target and lead to a potential interest rate
cut.

Powell also warned of the risk that leaving interest rates at an elevated level
for too long could jeopardize economic growth.

'In light of the progress made both in lowering inflation and in cooling the
labor market over the past two years, elevated inflation is not the only risk we
face,' he said. 'Reducing policy restraint too late or too little could unduly
weaken economic activity and employment.'

Sector News

Gold stocks showed a substantial move to the upside on day, driving the NYSE
Arca Gold Bugs Index up by 2.9 percent to its best closing level in over two
years. The rally by gold stocks came amid an increase by the price of the
precious metal.

Significant strength was also visible among semiconductor stocks, as reflected
by the 2.4 percent surge by the Philadelphia Semiconductor Index. The index
reached a new record closing high.

Housing stocks also saw considerable strength over the course of the session,
resulting in a 1.9 percent jumped by the Philadelphia Housing Sector Index.

Brokerage, biotechnology and pharmaceutical stocks also saw notable strength on
the day, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a
mixed performance during trading on Wednesday. Japan's Nikkei 225 Index climbed
by 0.6 percent, while China's Shanghai Composite Index slid by 0.7 percent.

Meanwhile, the major European markets have all moved to the upside on the day.
While the U.K.'s FTSE 100 Index advanced by 0.7 percent, the German DAX Index
and the French CAC 40 Index both jumped by 0.9 percent.

In the bond market, treasuries showed a lack of direction for much of the day
before closing modestly higher. As a result, the yield on the benchmark ten-year
note, which moves opposite of its price, dipped 2.0 basis points to 4.280
percent.

Looking Ahead

Trading on Thursday is likely to be driven by reaction to the Labor Department's
report on consumer price inflation and the data's impact on the outlook for
interest rates.



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