U.S. markets rebounded on Wednesday despite some weakness on the open and the official announcement of an impeachment inquiry against President Trump. The major indexes showed steady momentum afterwards and into the close following the release of the transcripts of the call between Trump and Ukraine’s President Volodymy Zelensky.
While the chances of an actual impeachment are small, the drama over the phone call will likely dominate Washington and thus limit work on any significant legislation. Despite the turmoil, the overall market gains held into the close with the major indexes pushing prior resistance levels.
The Russell 2000 rallied 1.1% following the opening run to 1,552. Prior and upper resistance at 1,535-1,550 was cleared and held with more important hurdles at 1,560-1,575.
The Nasdaq also added 1.1% after testing a morning high of 8,095. Previous and lower resistance at 8,100-8,150 was challenged but held on the close back above the 50-day moving average.
The Dow rose 0.6% after trading to a 1st half high of 27,016. Near-term and lower resistance at 26,800-27,000 was cleared and held with continued closes back above the latter keeping 27,250-27,500 in play.
The S&P 500 was also up 0.6% following the push to 2,989 ahead of the closing bell. Prior and lower resistance at 2,975-3,000 was cleared and held with a move above the latter getting 3,025 and all-time highs back in focus.
Technology and Communication Services paced sector strength after jumping 1.2% while Consumer Discretionary rose 0.9%. Healthcare was the weakest sector after sliding 0.5% while Real Estate and Utilities edged down 0.1%.