Stocks rose sharply on Wednesday, continuing a strong start to September for the market as traders took profits out of high-flying names like Apple and Tesla and snapped up shares in more beaten-down parts of the market.
The Dow Jones Industrial Average advanced 454.84 points, or 1.6%, to close at 29,100.50. It was the Dow’s first close above 29,000 since February. The S&P 500 gained 1.5% to end the day at 3,580.84 while the Nasdaq Compositewas higher by 1% at 12,056.44.
Both the S&P 500 and Nasdaq hit record highs, with the Nasdaq topping 12,000 for the first time. The Dow also posted its biggest one-day move since July 14. The S&P 500 had its best day since July 6.
Coca-Cola rose more than 3% along with IBM and Dow Inc to lead the 30-stock average higher. However, those stocks are still down year to date. Apple and Tesla slid 2.1% and 5.8%, respectively, giving back some of their recent sharp gains. The iShares Russell 1000 Value ETF (IWD) rose 1.6% to outperform its Growth counterpart.
Mike Bailey, director of research at FBB Capital Partners, pointed out that semiconductor stocks were outperforming software names in another sign of a market rotation taking place. The iShares Expanded Tech-Software ETF (IGV) traded 0.5% higher while the VanEck Vectors Semiconductor ETF (SMH) popped more than 2%.
“We’re seeing buyers perhaps looking for a little bit more durable growth, but not wanting to pay the kinds of crazy tech valuations that are out there,” said Bailey.
Wall Street was coming off a banner session in which the S&P 500 logged its best first trading day of September since 2010, according to Bespoke Investment Gr….