U.S. stocks close at highest level since May as Nasdaq exits bear-market territory

After four days in the red, U.S. stocks closed on Wednesday at their highest levels since early May following a July inflation report that came in slightly cooler than expected, sparking a sharp rally in both stocks and bonds. The S&P 500 SPX, +2.13% gained 87.75 points, or 2.1%, to close at 4,210.24, marking the first time the U.S. equity benchmark closed above 4,200 since May 4. The Dow Jones Industrial Average gained 535.43 points, or 1.6%, to finish at 33,309.32. The Nasdaq Composite COMP, +2.89% advanced 360.88 points, or 2.9%, to 12,854.80, exiting bear-market territory after 107 trading sessions. The Dow also exited correction territory. A bear market is typically seen as a drop of 20% or more from a recent high, while a correction is defined as a drop of 10% or more from a recent high.