Wall Street gains more than 2% in broader rebound

Major Wall Street indices jumped more than 2% on Tuesday as investors bought shares of megacap growth and energy companies after stock markets swooped last week on concerns of a global economic slowdown.

All 11 major S&P 500 sectors edged up as stocks fell broadly last week after the benchmark index posted its biggest weekly percentage decline since March 2020.

With investors trying to assess how far the stock could fall as they weigh the risks to the economy, the Federal Reserve has taken aggressive measures to try to cushion rising inflation. Earlier this month the S&P 500 fell more than 20% from its January all-time high, reaffirming the general definition of a bear market.

Christina Hooper, Chief Global Markets Strategist at Invesco, said, “Do I think we have bottomed out? No. I think we are going to see more volatility, I think the down process may take some time. Is.” “But I think seeing investor interest is a good sign.”

The Dow Jones Industrial Average rose 641.47 points, or 2.15%, to 30,530.25 and the S&P 500 rose 89.95 points, or 2.45%, to 3,764.79. Nasdaq The composite closed 270.95 points or 2.51% higher at 11,069.30.

The energy sector, the S&P 500 sector that was the biggest gainer this year, rose 5.1% after falling last week. There was an increase of at least 1% in each sector.

Megacap Stock Apple Inc., Tesla Inc. And Microsoft The Corp. grew solid all but the biggest individual boost to the S&P 500. Apple jumped 3.3%, Tesla 9.4% and Microsoft 2.5%.

The Fed last week approved its biggest interest rate hike in more than a quarter of a century to curb inflationary gains.

Investors are focusing on the testimony of Fed Chairman Jerome Powell of the US Senate Banking Committee on Wednesday for clues to future interest rate hikes and his latest thoughts on the economy.

“Investors are “reading tea leaves trying to see how aggressive the Fed is going to be,” said Chuck Carlson, chief executive officer of Horizon Investment Services in Hammond, Indiana. We’re going to see what happens to the inflation story.”

During this, Goldman Sachs It now expects the US economy to have a 30% chance of going into recession next year, higher than its previous forecast of 15%.

In company news, shares of Kellogg Company rose nearly 2% after the breakfast cereal maker said it was splitting into three companies.

Spirit Airlines shares jumped 7.9% on Monday, JetBlue Airways said as it sweetened its bid to persuade the ultra-low cost carrier to accept its offer on rival Frontier Airlines’ offer.

Issues moving forward outnumber those who rejected it NYSE by a 2.66-to-1 ratio; On the Nasdaq, a 2.22-to-1 ratio favored advances.

The S&P 500 posted a new 52-week high and 32 new lows; The Nasdaq Composite posted 37 new highs and 122 new lows.

About 12.4 billion shares changed hands on US exchanges, in line with the 12.4 billion daily average over the past 20 sessions.


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