 "US stock market: Wall Street finally gets its upward swing back after three days of losses")
Wall Street stocks rebounded Tuesday (August 6) after three consecutive days of losses, with analysts attributing the recovery to bargain hunting and a bounce in US bond markets.
The gains in New York followed a relatively quiet day in most overseas stock markets.
The Dow Jones Industrial Average finished up 294.39 points, or 0.8 per cent, at 38,997.66. The broad-based S&P 500 gained 53.70 points, or 1 per cent, to 5,240.03, while the tech-rich Nasdaq Composite Index also advanced 166.77 points, or 1 per cent, to 16,366.85.
Federal Reserve policymakers on Monday (August 5) pushed back against the notion that weaker-than-expected July jobs data signalled the economy was in a recessionary freefall.
“I’m hopeful that we’ll get some stability back,” said Jack Ablin of Cresset Capital, adding that there could still be “a little more downside risks to the market.”
“The question investors are grappling with is whether we’re hitting an economic air pocket or whether it’s a head fake … It was a single monthly jobs report so you’d want to be careful about reading too much into it,” said Scott Helfstein, head of investment strategy at Global X.
Market movers
Kenvue, the company behind Tylenol and Band-Aids, jumped 14.7 per cent after reporting stronger-than-expected profits, thanks in part to higher prices for its products.
Uber surged 10.9 per cent as it reported higher profits on a 16 per cent rise in revenues to $10.7 billion. Company officials pointed to strong demand from frequent users.
Impact Shorts
More ShortsCaterpillar gained 3.0 per cent after reporting better-than-expected profits as strong pricing offset the hit from lower revenues.
The reversal in the US equity market came as US Treasury bond yields climbed and as a closely-watched volatility index retreated.
Treasury yields rise
The yield on benchmark US 10-year notes rose 12 basis points to 3.903 per cent from 3.783 per cent late on Monday. The 30-year bond yield rose 12.1 basis points to 4.1924 per cent.
The 2-year note yield, which typically moves in step with interest rate expectations, rose 10.9 basis points to 3.9936 per cent from 3.885 per cent late on Monday.
With inputs from agencies
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