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U.S. stocks rise on a surprise boost in service activity and a surge in factory orders

Major stock indexes ended Wednesday’s session higher as U.S. services activity unexpectedly rose in July and new orders for U.S. industrial goods beat expectations.

The Dow Jones Industrial Average climbed 1.3% to 32,812.50, the S&P 500 1.6% to 4,155.17 and the Nasdaq Composite 2.6% to 12,668.16.

All sectors posted gains, with only energy in the red. Technology was the best performing sector.

The Institute for Supply Management’s U.S. services index rose to 56.7 in July from 55.3 in June, as the survey compiled by Bloomberg forecast a drop to 53.5. The price paid index has declined but still indicates a rapid acceleration in prices.

Earlier, the S&P Global non-manufacturing index was revised slightly higher in July to 47.3 from the flash estimate of 47, but was still below June’s reading of 52.7.

New orders for factory goods in the United States rose 2% in June, ahead of expectations of a 1.9% increase in a survey compiled by Bloomberg and after a 1.8% gain in may. Factory shipments increased 1.1% and factory inventories increased 0.4%.

St. Louis Federal Reserve Chairman James Bullard told CNBC Wednesday morning that he does not believe the United States is currently in a recession and that rate hikes to tame high inflation will continue. CNBC’s report indicates that if Bullard has his way, the rate could continue to rise to a range of 3.75% to 4% by the end of the year, from the current range of 2 .25% to 2.5%.

The US 10-year yield rose 2.5 basis points to 2.72% after hitting its lowest level since early April on Monday.

West Texas Intermediate Crude fell 3.8% to $90.81 a barrel. Total crude oil inventories fell 200,000 barrels in the week ended July 29, with commercial oil inventories up 4.5 million barrels and U.S. Strategic Petroleum Reserve inventories down 4 .7 million barrels. Gasoline inventories rose slightly, but distillate inventories fell.

In company news, Moderna (MRNA) maintained 2022 sales guidance for its COVID-19 vaccine despite a decline in shipments to a global vaccine sharing initiative after the drugmaker’s second-quarter results exceeded estimates. Shares jumped 16%, the most on the S&P 500 and the Nasdaq 100.

Paypal (PYPL) was the second best performer on both indexes, with shares up 9% after the company reported lower adjusted earnings to $0.93 per share in the second quarter from $1.15 a year ago, but still beat consensus by $0.87.

Match Group (MTCH) reported a loss of $0.11 per share in the second quarter, reversing a profit of $0.46 per share a year ago and missing expectations for a profit of $0.53 per share . The stock plunged nearly 18%, the worst performance on the Nasdaq 100.

Gold was down 0.4% at $1,782.00 per troy ounce, and silver was down 0.5% at $20.04 per ounce.