SHARP gains in biotechnology shares and a rebound in financials following upbeat results from Citigroup pulled US stocks up yesterday after two days of losses.
The Dow Jones industrial average rose 217 points, or 1.28 per cent, to 17,141.75, the S&P 500 gained 29.62 points, or 1.49 per cent, to 2,023.86 and the Nasdaq Composite added 87.25 points, or 1.82 per cent, to 4,870.10.
The S&P 500 health care index jumped 2.2 per cent despite a disappointing forecast from HCA Holdings, which fell five per cent to $72.21. The Nasdaq Biotech Index jumped 4.4 per cent, rallying sharply before the close.
“There’s a lot of cash on sidelines, and we did break through to a new high since the August decline,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. “Volume picked up as well, which is a strong indicator.”
Citigroup rose 4.4 per cent to $52.97 after the third-biggest US bank’s results beat estimates, while Goldman Sachs was up three per cent at $184.96, despite weak results.
The financial sector jumped 2.3 per cent, recovering from losses on Wednesday when JP Morgan results disappointed.
Nike rose 2.3 per cent to $128.79. The world’s largest sportswear maker said it expects revenue growth to be faster over the next five years.
On the downside, Netflix slid 8.3 per cent to $101.09.
The video-streaming service said US subscriber additions came in below expectations for the third quarter.
The stock weighed the most on the S&P.