Wall Street’s recovery continues with stocks notching third straight advance.
U.S. stocks overcame initial volatility to finish higher on Tuesday, as Wall Street extended its recovery following its worst week in years.
The large-cap S&P 500 Index (NYSEARCA:SPY) advanced 0.3% to close at 2,662.94.
Nine of 11 S&P 500 sectors contributed to the rally, with financials and consumer stocks leading the way higher. Healthcare, utilities and technology also finished in positive territory.
The Dow Jones Industrial Average (NYSEARCA:DIA) climbed 39.18 points, or 0.2%, to 24,640.45.
Meanwhile, the Nasdaq Composite Index (NYSEARCA:QQQ) rallied 0.5% to 7,013.51.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) ended the session slightly lower. Wall Street’s fear index touched a high of 27.82 before reversing course to finish at 24.93. The VIX briefly spiked above 50 last week, setting fire to inverse-volatility products.
In commodities, oil prices struggled for direction following their worst weekly rout since the market collapse three years ago. U.S. West Texas Intermediate (WTI) futures dipped 0.2% to $59.18 a barrel on the New York Mercantile Exchange. Brent crude futures climbed 0.3% to $62.78 a barrel.
Attention shifts back to economic data on Wednesday, with the Labor Department scheduled to report CPI inflation at 8;30 a.m. ET. CPI inflation is forecast to weaken to 1.9% annually 2.1% previously.
The Bottom Line: Stability has returned to Wall Street, although it remains unclear how long it will last. Volatility could return on Wednesday should inflation data outpace forecasts, prompting fresh anxiety over rising interest rates.