Wall Street closed higher on Wednesday, as economic data indicated job losses slowed in April and investors thought the stress tests results of banks may not be as bad as expected.
The ADP employer Services reported that companies in the United States cut an estimated 491,000 jobs in April, fewer than economists' forecast and the fewest since October. The report boosted investors' confidence.
Financials led the big board higher. Citigroup surged 16 percent after a person familiar with the matter said the lender needs about five billion U.S. dollars. Goldman Sachs and Morgan Stanley rose three percent and 6.8 percent, respectively, as people knowing the matter said they don't need more money following the stress tests.
The market was awaiting the results of the government's stress tests of the nation's 19 largest banks, due on Thursday. The report is expected to reveal which banks will need to raise capital.
Concerns about the stress tests briefly intensified in early trading after The New York Times reported on Wednesday that federal regulators have warned that Bank of America Corp. will need to raise about 34 billion U.S. dollars, more than expectations.
Energy stocks also helped the market sentiment, as crude oil rose above 56 dollars a barrel for the first time since November.
The Dow Jones rose 101.63, or 1.21 percent, to 8,512.28. Broader indexes also traded higher. The Standard & Poor's 500 index rose 15.73, or 1.74 percent, to 919.53, and the Nasdaq rose 4.98, or 0.28 percent, to 1,759.10.
Source: Xinhua
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