Stocks finish higher in wake of Monday flash crash.
U.S. stocks advanced on Tuesday, as rebounding technology and energy shares lifted the benchmarks to higher ground in the wake of the Monday selloff.
The large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.2% to 2,723.06, with six of 11 primary sectors finishing higher. Energy shares were among strongest contributors, rising more than 1% as a sector.
Rising tech shares lifted the Nasdaq Composite Index (NYSEARCA:QQQ) to higher ground. The tech-heavy index climbed 0.4% to close at 7,561.63.
Dow industrials (NYSEARCA:DIA) pared triple-digit gains to close up 30.31 points, or 0.1%, at 24,283.11.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) reversed course after a nearly 30% surge on Monday. The so-called “fear index” settled down more than 7% at 15.99.
Stock markets declined sharply on Monday, with the Nasdaq shedding more than 2% as investors braced for an all-out trade war between the United States and China. The selloff was triggered by reports that the Trump administration is planning to block Chinese investments in U.S. tech companies. Treasury Secretary Steve Mnuchin later dismissed the rumors but did not dispel the Trump administration’s increasingly protectionist stance.
In commodities, oil prices rose on Tuesday amid uncertainty over Libyan production and doubts about OPEC’s ability to ramp up output quickly.
U.S. West Texas Intermediate (WTI) futures surged 3.5% to $70.43 a barrel on the New York Mercantile Exchange. ICE Brent futures gained 2.2% to $76.38 a barrel.
The Final Word: Volatility made its presence felt in a big way on Monday. Tumult tied to U.S.-China trade tensions are a major source of risk for investors heading into the summer months.