{"id":118516,"date":"2021-07-20T21:53:16","date_gmt":"2021-07-20T21:53:16","guid":{"rendered":"https:\/\/fin2me.com\/?p=118516"},"modified":"2021-07-20T21:53:16","modified_gmt":"2021-07-20T21:53:16","slug":"wall-street-bounces-back-on-renewed-economic-optimism","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/wall-street-bounces-back-on-renewed-economic-optimism\/","title":{"rendered":"Wall Street bounces back on renewed economic optimism"},"content":{"rendered":"
NEW YORK (Reuters) – Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.<\/p> All three major U.S. stock indexes gained more than 1% with the blue-chip Dow, on the heels of its worst day in nine months, leading the charge.<\/p>\n The S&P notched its first advance in four days as well as registering its strongest day since March. The Nasdaq posted its first gain in six sessions.<\/p>\n \u201cIt\u2019s a buy-the-dip mentality coming into the market,\u201d said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.<\/p>\n Economically sensitive small caps and transports outperformed the broader market.<\/p>\n Benchmark U.S. Treasury yields bounced back from five-month lows, in the wake of their biggest single-session decline since February in the prior session. This helped boost rate-vulnerable banks by 2.6%.<\/p>\n \u201cThe economically sensitive stocks are up today,\u201d Carlson added. \u201cWhen the 10-year (Treasury yield) goes down in a short period of time, that typically doesn\u2019t happen with an economy that\u2019s supposed to be growing. Firming in the 10-year (yield) indicates that perhaps the economy isn\u2019t going to be falling off a cliff.\u201d<\/p>\n Mounting concerns over the highly contagious Delta variant of COVID-19, now responsible for the majority of new infections, have sparked sell-offs in recent sessions as worldwide vaccination efforts gather momentum.<\/p>\n \u201cThings like the Delta variant can certainly impact in the margins,\u201d Carlson said. \u201cIt doesn\u2019t take a whole lot of fear in some investors to create what we saw yesterday.\u201d<\/p>\n For an interactive graphic on global vaccine deployment and availability, click here here.<\/p>\n The Dow Jones Industrial Average rose 549.95 points, or 1.62%, to 34,511.99, the S&P 500 gained 64.57 points, or 1.52%, to 4,323.06 and the Nasdaq Composite added 223.89 points, or 1.57%, to 14,498.88.<\/p>\n Of the 11 major sectors in the S&P 500, all but consumer staples closed green. Industrials fared best, rising 2.7%.<\/p>\n Second-quarter reporting season has hit full-stride, with 56 of the companies in the S&P 500 having posted results. Of those, 91% have beaten consensus, according to Refinitiv.<\/p>\n Analysts now see annual S&P earnings growth of 72.9% for the April-June period, a significant improvement over the 54% growth seen at the beginning of the quarter.<\/p>\n Halliburton Co rose 3.7% after a bounce-back in crude prices boosted oilfield services demand, leading the company to post its second consecutive quarterly profit.<\/p>\n Peloton Interactive Inc advanced 6.7% after announcing it would provide UnitedHealth Group\u2019s fully insured members free access to its live and on-demand fitness classes.<\/p>\n Moderna\u2019s stock dropped 2% in a volatile session on Tuesday, with the COVID-19 vaccine maker the most heavily traded company on Wall Street ahead of its debut in the S&P 500 on Wednesday. [L1N2OW2AK]<\/p>\n Netflix Inc shares dipped more than 3% in after- hours trading after its forecast missed estimates.<\/p>\n Shares of Chipotle Mexican Grill gained over 2% post-market after its earnings and revenue beat consensus.<\/p>\n Advancing issues outnumbered declining ones on the NYSE by a 4.44-to-1 ratio; on Nasdaq, a 3.59-to-1 ratio favored advancers.<\/p>\n The S&P 500 posted 41 new 52-week highs and no new lows; the Nasdaq Composite recorded 45 new highs and 76 new lows.<\/p>\n Volume on U.S. exchanges was 10.62 billion shares, compared with the 10.19 billion average over the last 20 trading days.<\/p>\n