Dow rallies 415 points as brighter economic data and corporate earnings soften recession worries

US stocks soared Wednesday in a rally sparked by economic data and a crop of earnings reports that beat expectations and gave investors a chance to set aside recession concerns.

After two losses in a row, all three of Wall Street's major benchmarks gained ground. The major indexes went up in July.

The coffee shop chain, the drugstore retailer, and the COVID-19 vaccine maker each posted quarterly financial results that exceeded expectations on Wednesday, and investors pushed up their shares. Financial guidance was bumped up by the two companies.

On the economic front, June factory orders rose by a more-than- expected 2%, and US services sector activity improved in July from June. Econoday had a consensus estimate of 53.0% for the ISM Services Purchasing Managers' Index.

The US indexes were at their lowest point after the closing bell.

• S&P 500: 4,155.12, up 1.56% 

• Dow Jones Industrial Average: 32,812.00, up 1.28% (415.83 points)

• Nasdaq Composite: 12,668.16, up 2.59% 

Edward Moya, senior market analyst at Oanda, said in a note that the ISM report showed an improvement with both business activity and new orders. "Inflation is cooling, but if several industries are still reporting rises, further declines may not happen anytime soon," he said.

It's hard to say there's a recession with strong job growth in the first half of 2022. The Fed will raise interest rates by 1.5 percentage points in order to bring down inflation, which stood at 9.1% in June.

The debate over what the Fed will do in September won't be answered until we get closer to the Jackson Hole Symposium.

According to Vanda Research, retail investors are buyingTesla stock before shareholders vote on a 3-for-1 stock split

According to Bank of America, Wall Street's confidence in the stock market is the lowest in five years.

Less than a week after nearly $200 million was stolen from a firm, Solana was the next target.

The US government data showed an unexpected increase in weekly oil inventories. The price of oil had risen after the organization said it would raise production.

The price of West Texas Intermediate crude dropped. The international benchmark fell 3% to fetch 97.53 a barrel. The price downturn suggests that the market is concerned over the possibility of a decline in gasoline demand, according to a note written by NoahBarrett.

The price of gold fell to $1778.40 per ounce. The 10-year yield went up.

There was a 2% increase in the price of Bitcoins to $23,498.01.