U.S. Stocks Recover as S&P 500 Closes Above 4,700
The Dow Jones, S&P 500 and Nasdaq Composite all rallied on Tuesday.
The Dow and broader U.S. stock market traded higher on Tuesday, as investors continued to evaluate the impact of Covid-19 on the economy.
Wall Street’s major indices were higher at the close, with the Dow Jones Industrial Average (DIA) rising 183.15 points, or 0.5%, to 36,252.02.
The broad S&P 500 Index (SPY) of large-cap stocks gained 0.9% to settle at 4,713.07. Most sectors finished in positive territory.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) rose 1.4% to close at 15,153.45.
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 18.20 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 4.3% at 18.58.
In commodities, oil prices advanced on Tuesday, as U.S. West Texas Intermediate futures gained $3.16, or 4%, to $81.39 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, rose $2.86, or 3.5%, to $83.73 a barrel.
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In precious metals, gold prices rose sharply, as the February futures contract advanced $22.70, or 1.3%, to $1,821.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures gained 36 cents, or 1.6%, to trade at $22.82 a troy ounce.
The Final Word: Economic data will dominate the headlines this week as the Labor Department is set to report on the consumer price index on Wednesday. Headline CPI is expected to come in at 7.1% year-over-year in December, according to estimates.