Wall Street sees best day of trading in nearly two years amid recovery rally

Wall Street enjoyed its best day of trading in nearly two years, recovering most of the losses it suffered during a sell-off sparked by US economic fears earlier this week.

The S&P 500 rose 2.3% to 5,319.32, its biggest single-day jump since November 2022. The Dow Jones industrial average rose 1.8% to 39,446.49. The technology-focused Nasdaq Composite rose 2.9% to 16,660.02.

While the American workforce has remained unexpectedly resilient in recent years, adding an average of 215,000 jobs each month over the past year, economic anxiety looms large. In July, 114,000 jobs were added.

Now inflation is falling back, Fed officials are preparing to cut rates. Critics have accused them of waiting too long. They are next due to convene in September.