U.S. stocks rebounded sharply on Tuesday to recover much of the losses suffered in the previous session after investors’ worried about slowing global economic growth. Investor sentiment also got a boost from a string of upbeat earnings report, while many rushed to buy the dip. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.6% or 549.95 points to close at 34,511.99 points, after recording its worst single-day percentage decline in eight months in the previous session.
The S&P 500 gained 1.5% or 64.57 points to end at 4,323.06 points after recording its biggest daily percentage slide since May 12 in the previous session. The rally was led by financial and industrial stocks.
The Financials Select Sector SPDR (XLF) advanced 2.5%, while the Industrials Select Sector SPDR (XLI) gained 2.8%. All the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq gained 1.6% or 223.89 points to finish at 14,498.88 points, to end its fifth-day losing streak. Shares of Facebook, Inc. and Apple, Inc. (AAPL - Free Report) gained 1.4% and 2.6%, respectively. Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 12.31% to 19.73. A total of 10.62 billion shares were traded on Tuesday, higher than the last 20-session average of 10.19 billion. Advancers outnumbered decliners on the NYSE by a 4.44-to-1 ratio. On Nasdaq, a 3.59-to-1 ratio favored advancing issues.
Investors Gain Lost Confidence
Investors’ confidence had hit a low on Monday on growing fears of the rapidly spreading COVID-19 Delta variant that has now affected all the states in the United States. However, stocks bounced back sharply on Tuesday pairing the prevision session’s losses as investors realized that Monday’s selloff was a shade overdone although concerns over rising cases continue.
Tuesday’s rebound gathered steam almost throughout the day but stocks went on a rally only after Treasury yields somewhat pacified growing concerns that a rise in new COVID-19 cases would slow down economic recovery. The 10-year treasury yield jumped back to 1.20%, sending stocks on a rally. On Monday, the 10-year Treasury yield hit a five-month low of 1.1% on fears of slowing economic growth.
The rally was majorly led by stocks that had taken a bad hit on Monday. Shares of airline companies like American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) declined 4.1% and 3.7%, respectively, on Monday bounced back big on Tuesday. Shares of American Airlines surged 8.4%, while Delta Air Lines jumped 5.5%.
Also, upbeat corporate earnings from a string of companies lifted investors’ sentiment. The earnings season is about to enter its busiest phase and investors are keeping a close watch on the major companies.
Economic Data
In economic data, the U.S. Census Bureau said that housing starts increased in June to a seasonally-adjusted annual rate of 1.64 million units, increasing 6.3% from May downwardly revised figure.
However, housing permits declined 5% month-over-month in June to a seasonally-adjusted annual rate of nearly 1.6 million units. On a year-over-year basis, permitting for new homes jumped 23%.
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U.S. stocks rebounded sharply on Tuesday to recover much of the losses suffered in the previous session after investors’ worried about slowing global economic growth. Investor sentiment also got a boost from a string of upbeat earnings report, while many rushed to buy the dip. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.6% or 549.95 points to close at 34,511.99 points, after recording its worst single-day percentage decline in eight months in the previous session.
The S&P 500 gained 1.5% or 64.57 points to end at 4,323.06 points after recording its biggest daily percentage slide since May 12 in the previous session. The rally was led by financial and industrial stocks.
The Financials Select Sector SPDR (XLF) advanced 2.5%, while the Industrials Select Sector SPDR (XLI) gained 2.8%. All the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq gained 1.6% or 223.89 points to finish at 14,498.88 points, to end its fifth-day losing streak. Shares of Facebook, Inc. and Apple, Inc. (AAPL - Free Report) gained 1.4% and 2.6%, respectively. Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 12.31% to 19.73. A total of 10.62 billion shares were traded on Tuesday, higher than the last 20-session average of 10.19 billion. Advancers outnumbered decliners on the NYSE by a 4.44-to-1 ratio. On Nasdaq, a 3.59-to-1 ratio favored advancing issues.
Investors Gain Lost Confidence
Investors’ confidence had hit a low on Monday on growing fears of the rapidly spreading COVID-19 Delta variant that has now affected all the states in the United States. However, stocks bounced back sharply on Tuesday pairing the prevision session’s losses as investors realized that Monday’s selloff was a shade overdone although concerns over rising cases continue.
Tuesday’s rebound gathered steam almost throughout the day but stocks went on a rally only after Treasury yields somewhat pacified growing concerns that a rise in new COVID-19 cases would slow down economic recovery. The 10-year treasury yield jumped back to 1.20%, sending stocks on a rally. On Monday, the 10-year Treasury yield hit a five-month low of 1.1% on fears of slowing economic growth.
The rally was majorly led by stocks that had taken a bad hit on Monday. Shares of airline companies like American Airlines Group Inc. (AAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) declined 4.1% and 3.7%, respectively, on Monday bounced back big on Tuesday. Shares of American Airlines surged 8.4%, while Delta Air Lines jumped 5.5%.
Also, upbeat corporate earnings from a string of companies lifted investors’ sentiment. The earnings season is about to enter its busiest phase and investors are keeping a close watch on the major companies.
Economic Data
In economic data, the U.S. Census Bureau said that housing starts increased in June to a seasonally-adjusted annual rate of 1.64 million units, increasing 6.3% from May downwardly revised figure.
However, housing permits declined 5% month-over-month in June to a seasonally-adjusted annual rate of nearly 1.6 million units. On a year-over-year basis, permitting for new homes jumped 23%.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
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