© Reuters.

Investing.com – U.S. stocks joined a global equity rally Wednesday, recouping Tuesday’s losses.

The rally was set off by better economic news out of China and the Hong Kong government’s decision to withdraw its controversial proposal to extradite people to mainland China. Gains in energy stocks also helped.

As important, chip stocks, led by Micron Technology (NASDAQ:) and Intel (NASDAQ:) surged on hopes for better pricing and the Federal Reserve’s Beige Book report for August suggested the domestic economy, overall, was weathering the stresses of the U.S.-China trade battle.

The rose 1.08%, with the index rising 1.3% and the up 0.91%. The gains for the S&P 500 and Nasdaq were larger than their Tuesday losses. The Dow, up 237 points, recovered more than 83% of its 285-point loss on Tuesday.

The political news from the United Kingdom — including a vote in Parliament to delay the UK’s leaving the European Union at the end of October unless there’s a deal — had little effect on U.S. stocks. It was the second losing vote for Prime Minister Boris Johnson in two days. However, the pound rose against the U.S. dollar.

Despite the rise in risk assets, gold prices surged, with closing at $1,560.40 an ounce in New York. Gold is up more than 21% this year.

Oil prices also surged. rose rose $2.32 to $56.20 a barrel. crude, the global benchmark, topped $60 a barrel for the first time since Thursday, settling at $60.70 a barrel, up $2.44. WTI is up about 24% on the year; Brent has risen 12.8%.

Interest rates moved lower again, with the yield falling below 1.46%. The low yields have set off a rush of companies, including Apple (NASDAQ:), Walt Disney (NYSE:) and Deere (NYSE:), selling bonds or starting the process to lock in low rates, The Wall Street Journal said.

Thursday brings a number of reports, including the Energy Information Administration’s weekly report on oil inventories and the ADP (NASDAQ:) National Employment Report, a look-ahead to Friday’s jobs report from the Labor Department.

Among the strongest sectors Wednesday were oil services, natural-gas, chip stocks and hard drive stocks.

Biotechnology, pharmaceutical and healthcare stocks were mostly lower.

Twenty-seven of the 30 stocks were higher led by Intel (NASDAQ:), up 4.1%. UnitedHealth Group (NYSE:), Pfizer (NYSE:) and Merck (NYSE:) were the only decliners. Johnson & Johnson (NYSE:), however, gained just 0.09%.

Only 50 stocks in the were lower.

Clothier PVH (NYSE:); IPG Photonics (NASDAQ:), which makes lasers used in semiconductor manufacturing; General Electric (NYSE:) and athletic footwear retailer Footlocker were among the top performing S&P 500 performers.

Meat and poultry processor Tyson Foods (NYSE:), cosmetics maker and retailer Ulta Beauty (NASDAQ:), biotech company Incyte (NASDAQ:) and Fortive (NYSE:), maker of scientific instruments, were among the worst S&P 500 performers.

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