US stock market: S&P 500, Dow end higher as investors digest economic data ahead of inflation report
Investors were also watching developments in Washington to see whether U.S. lawmakers could avert a government shutdown.
The recent move in Treasury yields to 16-year highs has loomed over the stock market, which has pulled back after the Federal Reserve last week signaled a hawkish long-term outlook for interest rates.
The benchmark 10-year Treasury yield pausing at around 4.6% was bringing «relief,» said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
«Markets in general the last few days have been really, really choppy,» Stucky said.
«A little bit of a counter trend rally is to be expected after three or four pretty sharply negative days.»
The Dow Jones Industrial Average rose 116.07 points, or 0.35%, to 33,666.34, the S&P 500 gained 25.19 points, or 0.59%, to 4,299.70 and the Nasdaq Composite gained 108.43 points, or 0.83%, to 13,201.28.
Among S&P 500 sectors, the communication services group gained 1.2%, while materials rose 1%.
The rate-sensitive utilities sector sank 2.2%, continuing its recent slide.
The S&P 500 has pulled back over 6% since late July, but remains up about 12% for 2023.
Data showed the U.S. economy maintained a fairly solid pace of growth in the second quarter.
Separate readings showed initial jobless claims rose slightly last week and a higher-than-expected fall in contracts to buy existing homes in August.
Investors were looking ahead to Friday's personal consumption expenditures price index for the latest view on inflation.
«This is the most important U.S.
datapoint this week, and there is a growing anticipation that it won't run hot,» said Kristina Hooper, chief global market strategist at Invesco.
In Washington, the Democratic-led U.S. Senate
