What happened to the stock market Wednesday: economic data lifts stocks

spike

Traders with masks work on the first day of in-person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020.

Brendan McDermid | Reuters

Dow Jones Industrial Average rises 527 points

Data comes in better than expected

ADP and Moody’s Analytics reported private payrolls fell by another 2.76 million in May. The ADP number was far less than the 8.75 million estimate. Data from the Institute for Supply Management showed the U.S. services sector contracted less than expected, rebounding from an 11-year trough. 

Small caps, reopening trade lead the gains

Small-cap stocks outperformed their large-cap counterparts on Wednesday, with the Russell 2000 index gaining 2.59%. Stocks poised to benefit from the economy reopening also outperformed. Delta Air Lines rose 7.8% while Wynn Resorts advanced 11.18%.

What happens next?

Weekly jobless claims data, along with trade and productivity numbers, are set for release Thursday. Slack, Gap and Broadcom are also scheduled to report earnings.

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