U.S. stocks rebounded on Tuesday, led by a tech rally, as oil prices eased and investors shifted focus from the Middle East crisis to upcoming inflation data and the start of the quarterly earnings season. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 126.13 points, to close at 42,080.37 points.
The S&P 500 gained 1% or 55.19 points, to finish at 5,751.13 points, registering its largest single-day and percentage gain since Sept. 19. Consumer discretionary and tech stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) advanced 1.9%. The Consumer Discretionary Select Sector SPDR (XLY) rose 1%, while the Communication Services Select Sector SPDR (XLC) added 0.9%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 1.5% or 259.01 points to end at 18,182.92 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.39% to 21.42. A total of 11.57 billion shares were traded on Tuesday, lower than the last 20-session average of 12.1 billion.
Oil Prices Ease, Tech Stocks Drive Rally
Stocks came under pressure on Monday as Treasury yields surged and tensions in the Middle East escalated, raising concerns over its impact on oil prices. On Tuesday, investors continued to keep a close watch on Israel’s retaliation to Iran’s missile attacks.
However, oil prices eased on Tuesday, relieving investors of some of the tensions. West Texas Intermediate oil futures fell 4.6%. Energy stocks came under pressure, with the Energy Select Sector SPDR (XLE) declining 2.6%.
Shares of Valero Energy Corporation (VLO) slumped 5.3%, while Marathon Petroleum Corporation (MPC) ended 7.7% lower. Marathon Petroleum carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, Treasury yields somewhat eased on Tuesday, suggesting that investors flocked to high-growth stocks which typically benefit from lower debt costs to drive growth.
Tech stocks rallied on Tuesday. Shares of NVIDIA Corporation (NVDA) rose 4.1%, while Meta Platforms, Inc. (META) gained 1.4%. Broadcom Inc.’s (AVGO) shares jumped 3.2%.
Investors are also looking forward to the release of the key consumer price index (CPI) report for September, set to be released on Wednesday. Additionally, the earnings season is about to start, with JPMorgan Chase & Co. (JPM) and Delta Air Lines, Inc. (DAL) both scheduled to announce their quarterly earnings this week.
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