Wall Street has a rebound as anxiety over Brexit eases
U.S. stock indexes mounted a broad comeback Tuesday as investors set aside their anxiety over Britain’s vote to leave the European Union and snapped up shares following a two-day rout.
Encouraging data on the U.S. economy and housing market helped put traders in a buying mood. The broad rally followed even bigger gains in Europe, which also bounced back from the steep losses triggered by Britain’s “leave” vote last Thursday.
Oil and gas companies led the rally as energy prices rose. Banks and other financial companies, which took the heaviest losses in the sell-off, also surged. Health care, consumer and technology stocks also notched gains. Bond prices fell, sending yields higher.
“We were due for a bounce heading into the morning; we had a couple of tough days there,” said Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute. “Investors are stepping up and seeing some areas that may have been oversold the past couple of days and redeploying some of their cash.”
Despite the rebound, the three indexes remain on track to end June in the red. They’re also down for the year.
Investors appeared to shake off some of their jitters Tuesday. British Prime Minister David Cameron signaled he might not trigger a clause setting in motion the U.K.’s exit from the EU before October.
In the U.S., investors got a batch of encouraging economic data to consider.
The Commerce Department raised its estimate of U.S. economic growth in the first three months of the year. Separately, a key gauge of home values showed U.S. home prices climbed in April, hitting record highs in several cities. In addition, the Conference Board said its measure of U.S. consumer confidence increased this month.
Southwestern Energy climbed $1.47, or 11.8 percent, to $13.89, while Devon Energy added $2.24, or 6.6 percent, to $35.99.