Stocks rose on Tuesday, with the Dow Jones Industrial Average and the Standard & Poor’s 500 rebounding from their closing lows in nearly two years.
The Dow Jones advanced 226 points, or 0.8%. The S&P 500 is up 1%, and the Nasdaq Composite is up 1.3%.
The British pound rebounded slightly after falling to a record low against the dollar earlier in the week. Sterling gained more than 1% at $1.087 per dollar after hitting an all-time low of $1.0382.
Treasury yields also eased off their highs, boosting sentiment. The benchmark 10-year yield fell nearly 5 basis points to 3.823%.
Chicago Federal Reserve Chairman Charles Evans He indicated some concerns about the central bank raising interest rates too quickly to fight inflation, in contrast to a large number of Fed officials who have recently reiterated a hardline stance against rate hikes.
This step comes next Five consecutive days of losses for shares, with the S&P 500 closing at its lowest level since 2020. The Dow Jones fell more than 300 points on Monday, putting it in a bear market after dropping more than 20% from its record high. The 30 stock average also hit its lowest closing level since late 2020.
Technical indicators show that selling was historical. According to the Bespoke Investment Group, the S&P 500’s 10-day advanced decline line has reached a record low, which means market breadth is at its worst level in at least 32 years.
“We are heading towards the levels that a lot of technicians, and a lot of other market forecasters, are usually pointing to is where the market starts bottoming out,” said Keith Buchanan, senior portfolio manager at Global Investments.
“Participants in my view have started to get around the carnage, if you will, from the past two weeks and try to pinpoint that point in time when the markets are either rushing or are at the most pessimistic to engage more,” Buchanan added.
Consumer discretion and information technology were among the leading sectors that outperformed during Tuesday morning’s trading.
Consumer appreciation rose 1.6%, buoyed by cruise line shares that rose after news that Canada will scrap Covid-19 travel restrictions. Royal Caribbean Group is up 6.1%, and shares of Norwegian Cruise Line are up 4.9%.
Information technology stocks advanced 1.3%, supported by solar shares Enphase Energy and Nvidia that jumped 5.3% and 3.3%, respectively.
The latest round of selling appears to have had several catalysts, including the strength of the Federal Reserve and higher interest rates, which in turn turbulent currency markets. Monday , British pound fell to a record low Against the dollar, worrying investors on both sides of the Atlantic.
“Twitteraholic. Total bacon fan. Explorer. Typical social media practitioner. Beer maven. Web aficionado.”