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Shares surged on Wall Street on Tuesday, catching up much of the ground they had lost a day earlier when concerns erupted over the spread of cases of the most contagious variant of covid-19.
The comeback was the latest rebound after a pullback as investors continue to try to assess how much higher infections will hurt the economic recovery.
The S&P 500 gained 64.57 points, or 1.5%, to 4,323.06. The gain erased most of the benchmark’s 1.6% loss on Monday, its largest since May.
Shares of airlines, cruise lines and other stocks that sank a day earlier are back in the winner’s column. American Airlines climbed 8.4% and Carnival gained 7.5%. Technology, financials, industrials and healthcare stocks also contributed much of the benchmark’s overall gains.
The Dow Jones Industrial Average rose 549.95 points, or 1.6%, to 34,511.99. The blue chip index lost 725 points on Monday. The Nasdaq composite gained 223.89 points, or 1.6%, to 14,498.88.
Small business stocks posted the strongest rebound. The Russell 2000 Index topped the other major indices with a gain of 63.62 points, or 3%, to 2,194.30.
The strong one-day rebound for the entire market shows yet again how choppy trading has been as investors try to understand the virus’s lingering impact on inflation, the wider economy and businesses ranging from airlines to banks. The broader market has managed to continue to gain ground despite the churn rate and the benchmark S&P 500 has set several records in recent weeks.
The spread of the more contagious delta variant of covid-19 has become a matter of concern for investors and policymakers. The Centers for Disease Control said about 83% of cases in the United States are linked to the delta variant of the virus. While tens of millions of Americans have been vaccinated, there remains a significant percentage of Americans who are either reluctant or downright hostile to the idea of ​​getting the vaccine.
Last weekend, Los Angeles Country reinstated an indoor mask warrant as the region’s infection rate rose rapidly again. Other parts of the country, like Arkansas, are inundated with cases of covid that are again straining hospitals.
Bond yields fell sharply on Monday, fearing the strong economic recovery from the pandemic could be threatened by additional lockdowns or cases of coronavirus. The 10-year Treasury bill yield fell to 1.14% early Tuesday, but reversed course to 1.21% from 1.18% the day before. A week ago, it was trading at 1.42%.
“We’re seeing a more dramatic expansion of what we’ve been through over the past two weeks, which is really the market looking for a narrative,†said Yung-Yu Ma, chief investment strategist at BMO Management. of heritage.
Investors are looking for any clues they can get to better assess the continued trajectory of the economic recovery. Everything from the Federal Reserve’s comments to business outlook and economic data is used to get a clearer picture of what the economy might look like throughout the year and into 2022.
Wall Street is also in the middle of the earnings season. IBM rose 1.5% after the company reported better-than-expected revenue and profits, helped by its cloud computing business. Hospital operator HCA Healthcare jumped 14.4% for the S&P 500’s biggest gain after handily beating Wall Street earnings and earnings forecasts in the second quarter.
Outside of profits, drug distributors have made great strides after reports they are on the verge of a $ 26 billion settlement in opioid lawsuits. AmerisourceBergen rose 3.5% and McKesson rose 3.2%.
Paint and coatings maker PPG Industries fell 4.4% for the biggest decline in the S&P 500 after second-quarter profit fell below analyst expectations and faced chain issues. supply and at higher prices of raw materials.
Traders Ben Tuchman, left, and Neil Catania work on the New York Stock Exchange floor on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors clear a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)” style=”width: 100%”/>
Trader George Ettinger works on the floor of the New York Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
Edward McCarthy, center, works with other traders on the New York Stock Exchange floor on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout one day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
Traders Sal Suarino, left, and Frank O’Connell work on the New York Stock Exchange floor on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors clear a rout a day earlier caused by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
Trader Michael Bercovici works on the trading floor of the New York Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors brush off a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19[FEMININE(PhotoAP/RichardDrew)[FEMININE(PhotoAP/RichardDrew)
Specialist Michael Gagliano works at his post on the New York Stock Exchange trading floor on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout one day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
A trader works on the floor of the New York Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19[FEMININE(PhotoAP/RichardDrew)[FEMININE(PhotoAP/RichardDrew)
Trader Paul Slimkowski works on the trading floor of the New York Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
Trader Ashley Lara works on the floor of the New York Stock Exchange on Tuesday, July 20, 2021. Stocks open higher on Wall Street Tuesday as investors shed a rout a day earlier sparked by concerns about the spread of a more contagious variant of COVID-19. (AP Photo / Richard Drew)
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