Stocks rose on Tuesday as the Dow Jones Industrial Average and the S&P 500 rebounded from their lowest closes in nearly two years.
The Dow advanced 226 points, or 0.8%. The S&P 500 rose 1%, and the Nasdaq Composite rose 1.3%.
The British pound edged higher after falling to a record low against the dollar earlier in the week. Sterling traded 1% higher at $1.087 per dollar after hitting an all-time high of $1.0382.
Treasury yields also came off their highs, adding to sentiment. The benchmark 10-year yield fell nearly 5 basis points to 3.823%.
Chicago Federal Reserve President Charles Evans It felt a kind of fear That’s in contrast to central bank officials who have recently reiterated a tough stance against rising prices, about the central bank raising rates too quickly to fight inflation.
The move comes later Stocks lose for five consecutive days, the S&P 500 ends at its lowest level since 2020. The Dow fell more than 300 points on Monday, putting it in a bear market after falling more than 20% from its record high. The 30-share average also posted its lowest close since late 2020.
Technical indicators sell-off is historic. According to Bespoke Investment Group, the 10-day forward decline line for the S&P 500 is at its lowest level, meaning market breadth is at its worst in at least 32 years.
“A lot of technicians, a lot of market forecasters, we’re moving toward levels that generally indicate where the market is starting to make a bottom,” said Keith Buchanan, senior portfolio manager at Globalt Investments.
“My vantage point is that participants are starting to pick around the carnage, if you will, from the last couple of weeks, trying to identify a time when the markets have exited or engaged in maximum pessimism.” Buchanan added.
Consumer Discretionary and Information Technology were among the best performing sectors during the morning trade on Tuesday.
Consumer discretionary rose 1.6%, while cruise line shares rose after news that Canada would ease Covid-19 travel restrictions. Royal Caribbean Group rose 6.1% and Norwegian Cruise Line Holdings rose 4.9%.
Information technology stocks advanced 1.3%, while solar stock Enphase Energy and chip company Nvidia gained 5.3% and 3.3%, respectively.
The latest round of selling appears to have several catalysts, including an aggressive Federal Reserve and rising interest rates. Monday, the The British pound has fallen to a record low Against the dollar, that worried investors on both sides of the Atlantic.
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