Stocks rebound despite attacks on Amazon

A risk-on tone gripped U.S. markets, with equities pushing to session highs and bond yields climbing on speculation that President Donald Trump’s policies won’t disrupt global trade and economic growth.

Equities broke out from a mixed session following a Bloomberg report that suggested the White House isn’t actively looking to challenge Amazon.com’s business despite days of attacks from the president. That news came after the director of the National Trade Council said “smart money” would buy stocks following Monday’s rout, sparked in part by tariff angst and Donald Trump’s bluster against one of the nation’s largest companies.

“What we’ve seen first with Navarro and secondarily today with some of the headlines is them sort of pulling back on some of this,” Tom Essaye, founder of “The Sevens Report,” said by phone. “What we’re seeing is the administration, or one specific person, realizing there are unintended consequences of whatever fight he wants to pick at the moment. The market decline probably got bad enough yesterday to where it got people’s attention.”

The reversion to risk taking followed the S&P 500’s first close below its 200-day moving average since the Brexit vote, a rout that left major averages in correction territory. The U.S. equity benchmark is still more than 9 percent below its January record.

Investors are also contending with tighter monetary policy from the Federal Reserve, with Friday’s government jobs report the next major data point on the world’s largest economy. After that, earnings season looms, with analyst predicting a surge in profits.

Banks rose in tandem with interest rates, and health care companies also rallied. The S&P 500 rose 32 points, or 1.3 percent, to 2,614.

The Dow Jones industrial average climbed 389 points, or 1.6 percent, to 24,033. It fell 458 a day earlier. The Nasdaq composite increased 71 points, or 1 percent, to 6,941. Bond prices fell. The yield on the 10-year Treasury note rose to 2.79 percent.