U.S. Stocks Rebound Following Volatile Start to the Week
Dow Jones, S&P 500 and Nasdaq rebounded sharply on Tuesday.
The Dow and broader U.S. stock market rebounded on Tuesday, as investors continued to evaluate the health of the economy amid signs that a Covid-19 variant was spreading rapidly around the world.
All of Wall Street’s major averages were higher at the close, with the Dow Jones Industrial Average (DIA) rising 549.95 points, or 1.6%, to 34,511.99.
The broad S&P 500 Index (SPY) of large-cap stocks gained 1.5% to close at 4,323.06. Most primary sectors finished higher, with industrials and financials leading.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) gained 1.6% to settle at 14,498.88.
A measure of implied volatility known as the CBOE VIX (VXX) declined on Tuesday. The so-called “investor fear index” reached an intraday low of 19.37 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 11.7% at 19.86.
In commodities, oil prices rose on Tuesday, as U.S. West Texas Intermediate futures gained $1.00, or 1.5%, to $67.42 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, climbed $1.10, or 1.6%, to $69.72 a barrel.
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In precious metals, gold prices flat-lined on Tuesday, as the August futures contract edged up 10 cents, or 0.01%, to $1,809.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures declined 17 cents, or 0.7%, to $24.98 a troy ounce.
The Final Word: Covid-19 cases appear to be ramping up again in the United States, raising concerns that the new Delta variant could adversely affect the post-pandemic recovery.