US stocks soar on automakers, tech industry
US stocks began their ascent early Wednesday as market participants awaited the Senate panel’s vote on military intervention in Syria. The Senate Foreign Relations Committee eventually voted to authorize a military stroke on Syria for its alleged use of chemical weapons. The resolution backing a military strike is expected to make its way to the Senate floor next week. The growing likelihood of military intervention in Syria didn’t deter the markets, which enjoyed a broad rally led by automakers.
Ford Motor Company (NYSE:F) advanced almost 3.5 percent to $16.91 a share after sales beat forecasts. US sales increased 12 percent in August on strong demand for the F-Series pickup. Sales of F-Series trucks rose 22 percent, exceeding 70,000 sales for the second time this year. Ford indicated it would increase North American production by 7 percent in the fourth quarter to keep pace with the demand.
Shares of General Motors Company (NYSE:GM) soared more than 5 percent to $35.85 after the company sold more than 275,000 cars and trucks last month, beating sales estimates by 15 percent. Nearly all automakers are reporting large sales last month, making August the best month for auto sales in six years.
The benchmark indices soared on the automotive sector’s glad tidings. The Standard and Poor’s 500 rose more than 0.8 percent to 1,653.08. The Dow Jones Industrial Average added close to 100 points to end the day at 14,930.90. The NASDAQ Composite, powered by booming tech stocks, soared more than 1 percent to 3,649.04. Micron Technology and SanDisk Corporation rose more than 3.3 percent after rival SK Hynix was forced to suspend operations in China. Micron ended the day 5.3 percent higher at $14.75 a share, while SanDisk closed at $57.14 a share.
Underpinning the market’s rebound were comments from the US Federal Reserve suggesting the economy may not be ready for an asset taper. According to the Fed, the economy has maintained “modest to moderate” growth over the summer, leaving the door open to speculation ahead of the September 17-18 FOMC policy meetings.
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