US Index UP as investors buy up oversold stocks Tuesday

U.S. stock indexes posted strong gains Tuesday as investors buy up oversold shares in the technology, banking, airline and other sectors.

  • The S&P 500 climbed 80.84 points, or 2%, to close at 4088.85.
  • The Dow Jones Industrial Average rose 431.17 points, or 1.3%, to 32654.59.
  • The Nasdaq Composite jumped 321.73 points, or 2.8%, to 11984.52.

Yesterday worried 

Stocks have taken a fell in recent weeks on wide-ranging economic, geopolitical and Covid-19 concerns. Worrying many investors on the outlook for the U.S. economy as the Federal Reserve raise interest rates to combat inflation.  

Good economic data

On Tuesday, fresh data shows economic activities continue, with U.S. shoppers increasing retail spending in April for the fourth consecutive month. 

Keynotes from Jerome Powell's speech at the Wall Street Journal's Future of Everything Festival

Stocks gained on Tuesday afternoon as Fed Chairman Jerome Powell voiced explained his fight against inflation, indexes reacted positively by climbing back to new session highs. “There could be some pain involved” in restoring price stability, Mr. Powell said in remarks.

What analysts are saying

“I think for better or worse, this is often a pattern that we see in bear markets,” said Andrew Sheets, chief cross-asset strategist at Morgan Stanley. “You do get these reversals that happen quite frequently…and I think that makes it hard to trade.” 

source: the wall street journal