Wall Street hits the brakes and reverses sell-off

July 21, 2021 - 3 days ago
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Wall Street made a comeback on Tuesday with all three major indexes rising more than +1%, recovering much of the ground lost in the previous session, as the S&P 500 recorded its best day in nearly four months, as investors stepped in to ‘buy the dip’.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial climbed +549.95 points, or +1.62%, to 34,511.99, following its -725-point decline Monday.

The broad-based Standard & Poor’s 500 Index finished the session +64.72 points higher, or +1.52%, to end at 4,323.06.

That marked that index’s biggest one-session gain since March 26 and nearly erased Monday’s -1.58% drop.

The technology-focused Nasdaq Composite Index added +223.89 points, or +1.57%, to 14,498.88.

All three indexes are within 2% of their July 12 records, underscoring the rally’s strength that powered equity markets in the first half of the year.

The S&P 500 has climbed +15% in 2021, and the Dow industrials have added +13%.

On the other hand, Bitcoin has been excluded from Tuesday’s broad-market gains, holding below the $30,000 level, which it breached on Tuesday.

U.S. airlines and cruise companies led the rebound with American Airlines and Delta Air Lines, which lost -4% in the sell-off, added +8% and +5%, respectively, on Tuesday, while Royal Caribbean gained more than +7%, after falling -4% on Monday.

U.S. bank shares bounced back, too, as bond yields climbed higher.

JPMorgan shares rose +1.8%, and Bank of America gained +2%.

Energy and industrial stocks — two of the hardest-hit groups from Monday — also rebounded, with Exxon Mobil climbing more than +1%, General Electric advanced +5%.

Apple shares also got in on the action and climbed +2.6%, erasing Monday losses.

In bond markets, the yield on the benchmark 10-year U.S. Treasury note edged up to 1.208%, after dropping to 1.181% Monday. Yields rise as bond prices fall.

Stocks, bond yields and oil prices tumbled heavily on Monday as investors focused on the potential for the Delta variant, a jump in inflation and strained U.S.-China relations to weigh on the global economic recovery.

On the COVID-19 front, new cases are rebounding in the U.S. as the delta variant spreads, largely among the unvaccinated.

According to CDC data, the U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago.

Earnings season continues on Wednesday with key reporting from Coca-Cola, Johnson & Johnson, Verizon, CSX, Las Vegas Sands and Texas Instruments.

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