Stock finished firmly higher on Tuesday after posting a broad-based rally on Monday that snapped a sharp losing streak that saw the Dow Jones Industrial Average and the S&P 500 rack up their worst monthly losses since March 2020.
The Dow ended up 826 points, or 2.80%, to 30,316, while the S&P 500 rose 3.06%, and Nasdaq gained 3.34%.
Benchmark 2-year notes were pegged at 4.109%, while the yield on the benchmark 10-year Treasury note ticked down to 3.635% after touching more than 4% at one point last week. Yields move inversely to prices.
Monday brought a respite from steep losses seen throughout September and the prior quarter. The Dow jumped nearly 2.7%, or about 765 points. It was its best day since June 24. The S&P 500 advanced about 2.6% in its best day since July 27. The Nasdaq Composite increased roughly 2.3%.
Market-watchers attribute the now two-day October rebound to renewed optimism that the Federal Reserve and other central banks won’t have to continue pumping up benchmark rates in an effort to staunch rising inflation. Rising rates discourage consumers and businesses from borrowing money, slowing economic growth.
More signs of whether higher interest rates are impacting both the broader economy and companies’ hiring plans will come Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.
How a Strong Dollar Affects Currencies and Commodities
Investors also will be looking closely at Friday’s U.S. jobs report to assess how much impact the Fed’s rate hikes are already having on the economy. Economists are expecting the U.S. economy to have created 250,000 jobs last month, with the unemployment rate holding steady at 3.7%.
Recent jobs data have indicated that the labor market remains robust despite the Fed's rate hikes. Friday’s non-farm payrolls report will be the last before the Fed makes its next decision on interest rates, scheduled for Nov. 2.
In energy trading, benchmark U.S. crude added 31 cents to $83.94 a barrel. It jumped Monday amid speculation big oil-producing countries could soon announce cuts to production. Shares of energy-producing companies made big gains. Exxon Mobil (XOM) leaped 5.3%, and Chevron (CVX) climbed 5.6%.
Brent crude prices, meanwhile, the international standard, added $2.54 to $91.40 a barrel ahead of Wednesday’s OPEC meeting in Vienna, which is expected to conclude with a major production cut aimed at bolstering crude prices.
Among specific stocks, Twitter (TWTR) skyrocketed 22.3% on reports that Tesla (TSLA) CEO Elon Musk finally decided to resubmit his offer to acquire the microblogging website for $44 billion as he initially proposed.
Poshmark (POSH) shares rose 13.1% after the social-shopping marketplace said it has agreed to sell itself to South Korean internet giant Naver in a deal that values it at less than half the price where it went public in early 2021. Naver stock tumbled 8.8% in Seoul.
Shares of Nvidia (NVDA), meantime, were up 5.23% after the chip maker moved to cease operations in Russia and close its offices there, saying it could no longer operate effectively in the country because of recent events related to the invasion in Ukraine.
Tesla (TSLA) shares were also on the rebound Tuesday, climbing nearly 3% and clawing back some of the prior day's losses stemming from investors' negative perception of the company's third-quarter delivery results, and whether its fourth quarter production and delivery forecasts will meet its own forecasts.
And Credit Suisse (CSGKF) stock gained 10.7% after dropping as much as 11% on Monday as fears about its financial health calmed, following a firestorm on social media over the weekend that the bank was in trouble.
The cost of insuring Credit Suisse debt against default, as measured by credit-default swaps, also declined. It cost 308 euros a year to insure €10,000 of the bank's debt against default, down from €321 on Monday, according to S&P Global Market Intelligence data.
European stocks were higher on the session, rising 0.68% in mid-day Frankfurt trading, although the benchmark is on pace for its third consecutive quarterly decline, with a 0.37% gain for the FTSE 100 in London.
