Stocks regain much of the ground they lost a day earlier

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(AP) — Stocks jumped on Wall Street Tuesday, making up much of the ground they lost a day earlier when worries flared about spreading cases of the more contagious variant of COVID-19.

The comeback was the latest rebound following a pullback as investors continue to try and assess how badly rising infections will hurt the economic recovery.

The S&P 500 rose 64.57 points, or 1.5%, to 4,323.06. The gain erased most of the benchmark index’s 1.6% loss on Monday, its biggest since May.

Airlines, cruise operators and other stocks that sank a day earlier were back in the winning column. American Airlines climbed 8.4% and Carnival gained 7.5%. Technology, financial, industrial and health care stocks also powered a big share of the benchmark index’s broad gains.

The Dow Jones Industrial Average rose 549.95 points, or 1.6%, to 34,511.99. The bluechip index lost 725 points a day earlier. The Nasdaq composite gained 223.89 points, or 1.6%, to 14,498.88.

Small company stocks mounted the strongest comeback. The Russell 2000 index outpaced the other major indexes with a gain of 63.62 points, or 3%, to 2,194.30.

The sharp one-day rebound for the broader market shows yet again just how choppy trading has been as investors try to figure out the lingering virus’ impact on inflation, the broader economy and businesses ranging from airlines to banks. The broader market has managed to keep gaining ground even with all the churn and the benchmark S&P 500 notched several records over the last few weeks.

The spread of the more contagious delta variant of COVID-19 has become a worry spot for investors and policymakers. The Centers for Disease Control has said an estimated 83% of cases in the U.S. are tied to the delta variant of the virus. While tens of millions of Americans have gotten vaccinated, there remains a significant percentage of Americans who are either reluctant or outright hostile to the idea of being vaccinated.

Los Angeles Country last weekend reinstituted an indoor mask mandate as the region’s infection rate was climbing quickly yet again. Other parts of the country, like Southern Missouri, are flooded with COVID cases that are straining hospitals once more.