Stocks were up across the board with technology stocks leading the charge as investors sought bargains. The S&P 500 was up +0.99% while the Dow lifted +0.90% and Nasdaq rose +1.36%. Gains were made in aluminum (+3.29%), industrial suppliers (+2.48%) and hotels (+2.42%). Personal products (-0.76%) and airlines (-0.70%) were among the lagging groups. Aluminum company, Arconic rose +4.94% and Macy's new digital and restructuring initiatives were rewarded posting +4.56% increase on Tuesday.
Economic and political doubts have receded and investors are bullish about global economic growth and impetus from a season of strong earnings growth. Investors' focus has also shifted towards the annual economic symposium to begin on Thursday at Jackson Hole, Wyoming where central bankers will meet. Remarks by Janet Yellen, Federal Reserve chairwoman and Mario Draghi, president of the European Central Bank, who are scheduled to speak on Friday, are certainly to be scrutinised about both quantitative easing timetable and tapering of asset purchase.
- Dow 21,899 +0.90%
- S&P 500 2,452 +0.99%
- Nasdaq 6,297 +1.36%
- Russell 2000 1,371 +1.08%
- NYSE Composite 11,805 +0.73%
- Gold 1,290 -0.47%
- Oil WTI $47 +0.59%
- 10-Year Treasury Yield 2.21% +0.03%
Meanwhile, metal prices slipped lower and oil edge up 0.6% to $47 a barrel. Gold fell -0.47% to $1,290 an ounce. The dollar was strong as investors wait for direction from Jackson Hole. The US dollar index up +0.44% on expectations that a third interest rate rise may be in the offing from the Federal Reserve.
After a sell-off comes the bargain hunters and technology's pull back at the start of the week was in reverse as the investors ploughed more money into the sector on Tuesday. Technology was up +1.48% on the Dow.
Software company, 2U, was up +2.15%. Its share price has soared +64% year to date. Advanced Micro Devices rose +1%, Apple was up +1.63% and Cisco Systems rose +1.92%.