Tech stocks rally after an early loss, leading market higher
NEW YORK (AP) — Stocks overcame a weak start and finished broadly higher Tuesday, giving the major indexes on Wall Street their best day in nearly five weeks.
The S&P 500 rose 1.6 per cent, enough to recoup almost all of its losses from last week. The Dow Jones Industrial Average rose 1.5 per cent and the Nasdaq gained 2.2 per cent.
The last time the indexes mounted a bigger rally was March 16. The S&P 500 and Nasdaq came into this week with two straight weekly losses, while the Dow has fallen three weeks in a row.
Stocks have mostly struggled this year amid uncertainty over how the economy and corporate America will be affected as the Federal Reserve moves to reverse low-interest rate policies that helped markets soar in recent years.
“We’re just getting a little bit of a bounce back from what’s been a tough couple of weeks,” said Bill Northey, senior investment director at US Bank Wealth Management.
The S&P 500 rose 70.52 points to 4,462.21. The Dow recovered from a 17-point drop and climbed 499.51 points to 34,911.20. The Nasdaq gained 287.30 points to 13,619.66.
Nearly 90 per cent of the stocks in the benchmark S&P 500 rose. Technology stocks helped power the broad gains. Pricey valuations for many of the bigger technology companies give them more sway in directing the broader market higher or lower. Microsoft rose 1.7 per cent.
Retailers and health-care companies also helped lift the market. Amazon rose 3.5 per cent. Johnson & Johnson rose 3.1 per cent after reporting surprisingly good earnings while also raising its dividend.
Banks gained ground along with rising Treasury yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 2.94 per cent from 2.85 per cent late Monday. Bank of America rose 1.9 per cent.
Smaller company stocks outpaced the broader market in a sign of confidence about economic growth. The Russell 2000 rose 40.63 points, or 2 per cent, to 2,030.77.
Wall Street is increasingly focusing on the latest round of corporate report cards as more big companies release their earnings. Signature Bank jumped 8.1 per cent after beating analysts’ expectations.
