Stocks rose on Tuesday, with the Dow Jones Industrial Average and the Standard & Poor’s 500 rebounding from their closing lows in nearly two years.
The Dow Jones Industrial Average advanced 328 points, or 1.1%. The S&P 500 is up 1.5%, and the Nasdaq Composite is up 2%.
The British pound rebounded slightly after falling to a record low against the dollar earlier in the week. Sterling gained more than 1% at $1.087 per dollar after hitting an all-time low of $1.0382.
Treasury yields also eased off their highs, boosting sentiment. The benchmark 10-year yield fell nearly 5 basis points to 3.823%.
Chicago Federal Reserve Chairman Charles Evans He indicated some concerns on the central bank raising interest rates too quickly to fight inflation, in contrast to a large number of Fed officials who have recently reiterated a hard line against rate hikes.
This step comes next Five consecutive days of losses for shares, with the S&P 500 closing at its lowest level since 2020. The Dow Jones fell more than 300 points on Monday, putting it in a bear market after dropping more than 20% from its record high. The 30 stock average also hit its lowest close since late 2020.
Technical indicators show that selling was historical. According to the Bespoke Investment Group, the S&P 500’s 10-day advanced decline line has reached a record low, which means market breadth is at its worst level in at least 32 years.
The latest round of selling appears to have had several catalysts, including the strength of the Federal Reserve and higher interest rates, which in turn turbulent currency markets. Monday , British pound fell to a record low Against the dollar, worrying investors on both sides of the Atlantic.
“Normally, US investors wouldn’t care much about something like this, especially as of late. And so this tells me that there is now this fear gripping investors much more than it used to be. And that in turn will lead to what’s going on,” said Max Gochmann, CIO. In AlphaTrAI, “To a moment of surrender where we are really at the bottom”.
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