Wall Street gain as investors position for quarter end
U.S. stocks rose for a second consecutive session Wednesday as investors re-allocate positions for the end of the quarter and reports showed U.S. job markets continued recovering.
As the geopolitical fears were fading in the markets, investors started to re-allocate their investment for the end of the first quarter. The CBOE Volatility Index, which is considered the best gauge of fear in the market, fell below 18 Wednesday.
Investors' adjustment activities boosted the equity market. S&P 500 index broke through key level of 1,330, which was regarded as a resistance level for stocks, in mid-day trading session.
Automatic Data Processing, a private payroll company, said Wednesday that U.S. payrolls added 201,000 jobs in March, just below the expected 205,000.
The ADP figures came ahead of the government's much more comprehensive labor market report coming Friday, which will include both public and private sector employment.
Economists often use the ADP report to fine-tune their forecasts for the payrolls numbers, though it is not always accurate in predicting the outcome.
U.S. stocks closed higher on Tuesday for their seventh gain in nine sessions, with energy and telecommunication stocks led gainers.
Meanwhile, U.S. crude oil price fell on Wednesday as U.S. crude inventories rose more than expected last week despite the uncertainty in the Middle East.
As of gold, gold futures gained on Wednesday because investors' demand for the precious metal as a hedge against euro-zone debt worries and fighting in Libya was growing.
The Dow Jones industrial average rose 71.60 points, or 0.58 percent, to 12,350.61. The Standard & Poor's advanced 8.82 points, or 0.67 percent, to 1,328.26. The Nasdaq Composite Index was up 19.90 points, or 0.72 percent, to 2,776.79.