Tech companies take the lead as stocks surge on Wall Street
NEW YORK — U.S. stocks made their biggest gain since March on Tuesday as technology companies like Apple and Microsoft soared.
Homebuilders also climbed after the government said sales of new homes reached an eightyear high last month.
Tech stocks made their biggest gain in almost three months, which erased their losses from earlier this year. Banks rose as interest rates continued to inch higher, which lets banks make more money on lending.
Stocks have alternated between gains and losses in recent days following a four-week-long string of losses.
“A little bit of good data has reminded people that things are actually OK,” said David Lefkowitz, strategist at UBS Wealth Management. “It’s almost like a rubber band. When things get too stretched, they snap back.”
Many investors are speculating the economy can withstand higher interest rates amid rising bets the Federal Reserve will tighten policy this summer.
The Dow Jones industrial average rose 213.12 points to 17,706.05. The Standard & Poor’s 500 index picked up 28.02 points to 2,076.06. The Nasdaq composite index surged 95.28 points to 4,861.06.
Homebuilding stocks jumped after the Commerce Department said sales of new homes reached their highest level since January 2008. Sales of both newly built and previously occupied homes grew as job gains and low mortgage rates encourage Americans to keep buying homes.