Wall Street bounces back from biggest one-day drop and posts sharp gains
U.S. stocks posted sharp gains in another wild trading session on Tuesday, as indexes rebounded from the biggest one-day drops for the S&P 500 and the Dow in more than six years that stalled the market's record run.
Stocks swung from negative to positive after indexes started the session 2 percent lower, underscoring a return of volatility to a market that until recently was marked by an absence of major shifts. The Dow had a more than 1,100-point difference between its high and low on Tuesday.
The sharp declines in recent days marked a pullback that had been long awaited by investors after the market minted record high after record high in a relatively calm ascent.
“Despite violent moves in the last couple days in the market, fundamentals in the economy are very strong and it’s not just the U.S., it’s throughout the global economy," said Alicia Levine, head of global investment strategy at BNY Mellon Investment Management in New York.
The Dow Jones Industrial Average rose 567.02 points, or 2.33 percent, to 24,912.77, the S&P 500 gained 46.2 points, or 1.74 percent, to 2,695.14 and the Nasdaq Composite added 148.36 points, or 2.13 percent, to 7,115.88.
Technology, materials and consumer discretionary were the top-performing sectors on Tuesday. Defensive sectors utilities and real estate were the only major S&P groups to end negative.