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U.S. stocks soar as growth fears ease; Dow Jones up 2.33%

Published 09/01/2010, 10:35 AM
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Investing.com – U.S. stock markets were up after the open on Wednesday, posting sharp gains, after better-than-expected manufacturing activity data alleviated concerns over the U.S. economic recovery.
 
During early U.S. trade, the Dow Jones Industrial Average gained 2.33%; the S&P 500 index was up 2.57%, while the Nasdaq Composite index increased 2.83%.

Earlier in the day, the Institute for Supply Management said its index of purchasing managers increased to 56.3 in August, after falling to 55.5 in July.

Analysts had expected the index of purchasing managers to decline to 53.0 in August.

Following the news, stocks in the industrial sector gained broadly, as shares in manufacturing equipment provider Caterpillar Inc. soared 4.70%, while stocks in Deere & Company increased 4.58%.

Elsewhere, stocks in Joy Global Inc., a manufacturer and servicer of mining equipment, rose 5.67% after the company lifted its earnings outlook for the rest of 2010.

On the corporate front, shares of Burger King Holdings rose 4.92%, after reports surfaced that the fast-food giant recently discussed the possibility of a takeover by private-equity firms.

In the commodity sector, crude oil prices increased 2.81% to hit USD 73.72 a barrel.

Across the Atlantic, European stock markets were up: France’s CAC 40 jumped 3.18%, Germany's DAX soared 2.22%, the EURO STOXX 50 increased 2.82%, while the FTSE 100 advanced 2.36%.

Earlier in the day, fears over the global growth eased after official data showed that manufacturing activity in China increased more-than-expected in August, after falling sharply in July.

Meanwhile, official data showed that Australia’s economy expanded more-than-expected in the second quarter, growing at its fastest pace in 3 years.

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