Stocks end higher, breaking 3-day slump
Energy and technology companies led stocks broadly higher on Wall Street Tuesday, ending the market’s three-day losing streak.
The S&P 500 rose 1.8 percent, more than making up for the ground it lost a day earlier. The tech-heavy Nasdaq rose 2.4 percent, while the Dow Jones Industrial Average gained 1.6 percent.
Small-company stocks rose even more than the rest of the market, a signal that investors were feeling a more optimistic about the economy. The Russell 2000 rose 2.9 percent.
The rapidly spreading omicron variant of the COVID-19 virus has been weighing on the market in recent weeks, adding to concerns about how the pandemic, rising inflation and persistent global supply chain issues will affect the economy.
Tuesday’s gains marked a reversal for the market after its recent pullback, but it doesn’t necessarily mean investors are now in a buying mood.
“The market was oversold, and so it got like a stretched rubber band and we had a sharp snapback today,” said Sam Stovall, chief investment strategist at CFRA. “I need to see follow-through. We could just as easily see a giveback of some of these gains tomorrow.“
The S&P 500 rose 81.21 points to 4,649.23. The benchmark index is within 1.4 percent of the all-time high it set Dec. 10.
The Dow climbed 560.54 points to 35,492.70. Nike, one of the 30 stocks in the blue chip index jumped 6.1 percent after turning in strong quarterly results.
The Nasdaq rose 360.14 points to 15,341.09 and the Russell 2000 gained 63.07 points to 2,202.95. Nearly five stocks rose for every one that fell on the New York Stock Exchange.
The gains follow several weak days for major indexes as investors assess the impact from skyrocketing omicron cases. Nations in Europe and Asia have implemented a variety of restrictions aimed at curtailing the spread and that has investors worried about the impact to the global economy.
About 85 percent of the stocks in the S&P 500 rose. Technology companies accounted for a big share of the gains. Citrix Systems climbed 13.6 percent for the biggest gain in the index. Micron Technology jumped 10.5 percent after the chipmaker gave investors an encouraging profit forecast.
A mix of retailers. restaurant chains and other companies that rely on consumers also notched solid gains. Tesla climbed 4.3 percent, Amazon.com rose 2 percent; Starbucks rose 2.1 percent.
Bank stocks got help from rising bond yields. The yield on the 10year Treasury rose to 1.47 percent from 1.42 percent late Monday.
U.S. crude oil prices rose 4.2 percent and helped send energy stocks higher.