WASHINGTON (dpa-AFX) - Stocks moved sharply higher over the course of the trading day on Tuesday, regaining ground following the sell-off seen in the previous session. The major averages all showed significant moves to the upside, with the Dow and the Nasdaq closing higher for the first time in five days.
The major averages surged in morning trading and remained firmly positive throughout the afternoon. The Dow soared 1,016.57 points or 2.7 percent to 39,186.98, the Nasdaq spiked 429.52 points or 2.7 percent to 16,300.41 and the S&P 500 shot up 129.56 points or 2.5 percent to 5,287.76.
The early rally on Wall Street came as some traders looked to pick up stocks at reduced levels following the steep drop seen on Monday.
Stocks showed a substantial move to the downside during Monday's session amid lingering trade war concerns and President Donald Trump's continued attacks on Federal Reserve Chair Jerome Powell.
Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.
Citing people who attended the session at an event hosted by JPMorgan Chase (JPM), Bloomberg reported Bessent said negotiations haven't started but that a trade deal with China is possible.
A person in the room also told CNBC that Bessent called the current status quo unsustainable and predicted there will 'de-escalation' in the 'very near future.'
The markets also benefitted from a positive reaction to some of the latest earnings news, with shares of 3M (MMM) soaring by 8.1 percent after the manufacturing conglomerate reported better than expected first quarter results.
Aircraft engine supplier GE Aerospace (GE) also spiked by 6.1 percent after reporting first quarter earnings that exceeded analyst estimates.
Electric vehicle maker Tesla (TSLA), which is among the companies due to report their quarterly results after the close of today's trading, also shot up by 4.6 percent.
Sector News
Housing stocks showed a substantial move to the upside over the course of the session, driving the Philadelphia Housing Sector Index up by 3.7 percent.
Significant strength was also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index surging by 3.4 percent and 3.3 percent, respectively.
Retail, biotechnology and oil producer stocks also saw considerable strength, while gold stocks were among the few groups to buck the uptrend amid a pullback by the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index dipped by 0.2 percent, while China's Shanghai Composite Index rose by 0.3 percent.
Meanwhile, the major European markets all moved higher over the course of the session. While the German DAX Index increased by 0.4 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both climbed by 0.6 percent.
In the bond market, treasuries saw modest strength after ending the previous session firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1.6 basis points to 4.389 percent.
Looking Ahead
Early trading on Wednesday may be impacted by reaction to Tesla's earnings, while AT&T (T) and Boeing (BA) are also among the companies due to report their quarterly results before the start of trading.
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