After ending the previous session sharply lower, stocks showed a substantial move back to the upside during trading on Tuesday. The major averages moved higher in early trading and climbed more firmly into positive territory as the day progressed.
The major averages reached new highs for the session going into the close. The Dow surged 560.54 points or 1.6 percent to 35,492.70, the Nasdaq spiked 360.14 points or 2.4 percent to 15,341.09 and the S&P 500 jumped 81.21 points or 1.8 percent to 4,649.23.
Bargain hunting contributed to the strength on Wall Street, as traders picked up stocks at somewhat reduced levels on the heels of recent weakness.
The steep drop seen during trading on Monday dragged the tech-heavy Nasdaq down to its lowest closing level in over two months.
Chipmaker Micron Technology (MU) help lead a rebound by tech stocks after reporting better than expected fiscal first quarter results and providing upbeat guidance.
Shares of Nike (NKE) and Rite Aid (RAD) also posted standout gains after the companies reported quarterly results that beat expectations.
The rebound on Wall Street also came after a report from Moderna (MRNA) about the effectiveness of a booster dose of its Covid-19 vaccine against the Omicron variant.
Moderna announced that a booster dose of its Covid-19 vaccine increased antibody levels against Omicron.
The currently authorized 50 microgram booster dose increased neutralizing antibody levels against Omicron approximately 37-fold compared to pre-boost levels, Moderna said.
Airline stocks turned in some of the market’s best performances on the day, with the NYSE Arca Airline Index soaring by 5.3 percent.
Substantial strength was also visible among energy stocks, which benefited from a significant rebound by the price of crude oil. Crude for February delivery spiked $2.51 to $71.12 a barrel after plunging $2.11 to $68.61 a barrel on Monday.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index surged up by 5.2 percent and the NYSE Arca Oil Index shot up by 3.5 percent.
Micro helped lead a rally by semiconductor stocks, resulting in a 3.4 percent jump by the Philadelphia Semiconductor Index.
Computer hardware, financial and software stocks also saw considerable strength on the day, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved notably higher during trading on Tuesday. Japan’s Nikkei 225 Index spiked by 2.1 percent, while China’s Shanghai Composite Index advanced by 0.9 percent.
The major European markets also showed strong moves back to the upside on the day. The German DAX Index, the U.K.’s FTSE 100 Index and the French CAC 40 Index all surged up by 1.4 percent.
In the bond market, treasuries moved notably lower amid the rebound on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6.8 basis points to 1.487 percent.
Trading on Wednesday may be impacted by reaction to reports on consumer confidence and existing home sales.
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