Stocks finish firmly higher following tumultuous three-day stretch.
U.S. stocks advanced on Tuesday, with the S&P 500 Index (NYSEARCA:SPY) snapping a three-day losing streak as calm returned to Wall Street in the wake of Turkey’s currency crisis.
The S&P 500 Index advanced 0.6% to 2,839.96, with all 11 primary sectors finishing higher. Dow industrials (NYSEARCA:DIA) jumped 112.42 points, or 0.5%, to close at 25,300.12. Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) added 0.7% to finish at 7,870.90.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply on Tuesday. The so-called “fear index” closed down 10% at 13.31, on a scale of 1-100 where 20 represents the historic average.
Global data flows dominated the headlines on Tuesday, with China reporting a marked slowdown across several economic indicators.
Chinese retail sales, industrial production and fixed-asset investment either slowed or grew less than expected in July, a sign that global trade concerns were impacting mainland production.
In Europe, Germany’s gross domestic product (GDP) expanded 0.5% in the second quarter, revised estimated showed. Eurozone GDP also expanded at a revised 0.4% pace in April-June. Both figures were higher than last month’s preliminary estimate.
Stronger data failed to lift the euro on Tuesday, as the common currency fell to fresh yearly lows against the dollar. The dollar index (DXY), which tracks the greenback’s performance against a basket of six peers, rose 0.4% to 96.74.
The Final Word: Stocks bounced back sharply on Tuesday but downside risks tied to geopolitics and trade remain in the foreground. This could make the final stretch of summer particularly volatile for Wall Street after a mostly upbeat season.