Wall Street advanced on Wednesday after unofficial data showed Chinese exports topped expectations, boosting hopes for a global recovery.
Chinese exports jumped about 50 percent in May from a year earlier, sources told Reuters. The surge would suggest the risk of a Chinese economic downturn is very small. The report, which will be officially released Thursday, fueled a rise in global markets.
Everybody was worried because China has been the leading engine of the world economy, and a few months ago when the Chinese government put the brakes on it, that meant putting the brakes on the world economy, said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.
Now that it looks like the government feels like they slowed the economy down enough and they are going to allow more growth to come back into their economy, people are optimistic.
The Dow Jones industrial average <.DJI> gained 48.60 points, or 0.49 percent, to 9,988.58. The Standard & Poor's 500 Index <.SPX> rose 5.53 points, or 0.52 percent, to 1,067.53. The Nasdaq Composite Index <.IXIC> climbed 11.42 points, or 0.53 percent, to 2,181.99.
In testimony prepared for delivery to the U.S. House of Representatives Budget Committee, Federal Reserve Chairman Ben Bernanke said the economic recovery appeared to be on solid footing but cautioned that it could take years before the labor market recovers from the deep recession.
Texas Instruments Inc added 1.4 percent to $24.22 after the chipmaker said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers.
The PHLX Semiconductor index <.SOXX> gained 1 percent.
Ciena Corp jumped 7.7 percent to $14.91 after the communications equipment maker said its second-quarter loss was narrower than expected and that customer spending was recovering.
The Fed's Beige Book summary of economic conditions around the United States will be released at 2 p.m. EDT.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)