U.S. Stocks Recovered on Tuesday, Dow Gained 311.75 Points
U.S. stocks recovered on Tuesday following a technology-centered market rout on Monday. The Dow Jones Industrial Average added 311.75 points or 0.92% to 34,314.67. The S&P 500 advanced 1.05% to 4,345.72. The Nasdaq Composite gained 1.25% to 14,433.83. However, all of them are still down for the week after closing off their highs.
On Tuesday, mega-cap tech names were solidly in the green. Netflix gained 5.2%, and Amazon added just shy of 1%. Tech giants Apple and Alphabet rose 1.4% and nearly 1.8%, respectively. Shares of Facebook advanced 2% following a 5% slide one day earlier due to a whistleblower’s claims as well as a site outage.
Energy stocks rose again as oil prices continued to rise on Tuesday. U.S. oil prices surpassed $79 per barrel on the day before settling at $78.93. Shares of Chevron gained 1% and Enphase Energy added 1.6%.
Stocks connected to the economic recovery, like airlines, cruise lines, retailers and banks, also rose alongside the broader market. Goldman Sachs advanced 3.1%, Well Fargo added 2%, and the Norwegian Cruise Line gained more than 1%.
Although the market has been partitioned lately between stocks leveraged to the economic comeback as well as Big Tech, both of them enjoyed gains on Tuesday. Notably, all but four Dow members were in the green.
The Institute for Supply Management services PMI report for September also helped to improve the market sentiment. Its services PMI report for September rose to 61.9 from 61.7 in August, 2 points better than expected.
U.S. stocks and important details
Two days ago, the Nasdaq Composite dropped 2.1% for its sixth negative day in seven as the tech heavyweights declined. The Dow Jones Industrial Average dropped more than 300 points, the S&P 500 fell 1.3%, dragged down by technology shares.
Tech suffered serious losses in September as a jump in yields caused investors to rotate out of the highly valued shares since rising rates can make their future profits look less attractive. Yields are increasing as the country’s central bank signaled in September it would start tapering its monthly bond-buying soon.
The stock market was struggling to deal with challenges in September as inflation fears, slowing growth and rising rates kept investors on edge. In September, the S&P 500 declined 4.8% posting its worst month since March 2020 and breaking a seven-month winning streak.