U.S. indexes shake off an early slump and eke out gains

Stock indexes on Wall Street ended with meager gains Tuesday, as a late-afternoon rally led by technology companies stemmed the market’s losses after an early slump.

The S&P eked out a gain of 0.2% after having been down 2.2% earlier in the day. The

Dow Jones Industrial Average lost 0.4%, while the tech-heavy Nasdaq composite closed 1.7% higher.

The weak opening, which followed a long weekend for the Independence Day holiday, came about as the price of U.S. crude oil fell sharply, eventually settling below $100 a barrel for the first time since early May. Bond yields also fell, a sign traders were seeking less risky assets.

Energy, industrial, health care and most of the 11 sectors in the S&P 500 ended in the red, despite the late-day rally in technology stocks, communication firms and retailers and other companies that rely on direct consumer spending.

The volatility reflects growing worries among investors that the economy is slowing under the weight of surging inflation and sharply higher interest rates, pressures that could tip the economy into a recession.

“The market is really taking the growth slowdown as the primary driver today,” said

Paul Kim, CEO of Simplified Asset Management. “So you’re seeing a modest sell-off in risk assets, but a significant sell-off in oil, energy, commodities tied to growth, as well as a a modest drop in yields.”

The S&P 500 rose 6.06 points to 3,831.39. The Nasdaq rose 194.39 points to 3,831.39. The Dow Jones Industrial Average remained in the red, losing 129.44 points to 30,967.82.

Small-company stocks also bounced back after a downbeat start. The Russell 2000 rose 13.57 points, or 0.8%, to 1,741.33.

European markets fell broadly.

Stocks remain in a slump that pulled the S&P 500 into a bear market last month, meaning an extended decline of 20% or more from a recent peak. The market’s performance in the first half of 2022 was the worst since the first six months of 1970.