Wall Street recorded solid gains on back of financial and tech stocks
After dropping sharply in the previous day, major equity indexes in the U.S. rebounded strongly on Tuesday with the S&P 500 Index recording its best daily performance in nearly two months and the heavy-tech Nasdaq Composite Index rising more than 1%.
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The S&P 500 technology index .SPLRCT, which had its worst day in two weeks on Tuesday, closed the day 1% higher. Furthermore, the divergence between the short-term and the long-term U.S. Treasury bond yields helped the financial sector, lifting the shares of Bank of America and JP Morgan Chase nearly 2%, and pushing the .SPSY 1.5% higher.
In the meantime, crude oil prices built on its gains from yesterday, with the barrel of West Texas Intermediate reaching its 10-day high at $44.80, and helped the S&P 500 energy index .SPNY add 0.6%.
"The market has had trouble really appreciating, but it has had even more trouble declining," Rick Meckler, president of LibertyView Capital Management in Jersey City, told Reuters and added that it seems like any negative period is very quickly met with new buyers.
The Dow Jones Industrial Average closed the day 144.95 points, or 0.68%, higher at 21,453.02, the S&P 500 added 18.25 points, or 0.75%, to 2,439.85 and the Nasdaq Composite gained 71.94 points, or 1.17%, to 6,218.56.
Headlines from the U.S. session:
- Renewed uncertainty about US politics is weakening risk sentiment - Nomura
- US Pending home sales: Another disappoint - Wells Fargo
- US Dollar Index drops further below 96.00 to fresh 8-month lows
- US Pres Trump on healthcare bill: We're going to get it over the line
- Carney changes his mind, GBP soars - BBH
- US wage growth exceeds productivity growth - BBH
- WTI stronger, tests $44.80 post-EIA
- EIA: U.S. commercial crude oil inventories increased by 0.1 mln barrels
- US: Pending home sales in May slump for the third consecutive month
- US Dollar could depreciate is a new perception - Natixis