Stocks surged Tuesday as Wall Street built on the sharp gains seen in the previous session and bond yields continued to fall.
The Dow Jones Industrial Average rose 581 points, or 1.97%. The S&P 500 rose 2.09% and the Nasdaq Composite rose his 2.27%.
All major averages are now about 5% above their respective lows this year. Tuesday’s gain saw the S&P 500 rise 5.3% in his week, on track for his biggest two-day gain since March 2020.
The market started off strong this month, relieving the sharp declines seen in September and the previous quarter. On Monday, the Dow soared about 765 points to its highest since June 24th. The S&P 500 rose about 2.6% in his one day, its biggest since July 27, while the Nasdaq rose his 2.3%.
“After falling more than 9% in September and widening its year-to-date decline to nearly 25% as of Friday’s close, the S&P has rallied,” said Mark Höfele, chief investment officer at UBS Global Wealth Management. The total of 500 species seemed oversold,” he said. Additionally, some of last week’s selling pressure may have been caused by the now closed quarter-end rebalancing. ”
“Regular rebounds are to be expected as sentiment for equities is already very weak,” he added. “However, the market is likely to remain volatile in the short term, largely due to expectations around inflation and policy rates,” he said.
Sentiment has improved over the past two sessions as US Treasury yields have dropped from more than a decade highs. The 10-year Treasury yield on Tuesday traded at around 3.617% and was above 4% at some point last week. Earlier in the day, it slipped below 3.6%.
Sentiment on Tuesday was also boosted as Credit Suisse shares traded 4% higher. Earlier in the week, there were concerns about the financial health of banks. The bank told CNBC that it will provide an update on its strategy along with third-quarter numbers.
Stocks continued to rally after jobs data showed a weakening labor market, and some traders speculated that the Fed could pull back its aggressive tightening campaign sooner than expected.