Wall Street stocks closed higher on Tuesday following heavy losses in the previous session.
At the close, the Dow Jones Industrial Average was up 0.92% at 34,314.67, while the S&P 500 was 1.05% firmer at 4,345.72 and the Nasdaq Composite saw out the session 1.25% stronger at 14,433.83.
The Dow closed 311.75 points higher on Tuesday, almost reversing losses recorded on Monday as investors rotated out of tech stocks amid rising bond yields.
Investors seemed to be buying the dip on Tuesday, as tech stocks traded higher despite the yield on the benchmark 10-year Treasury note trading higher at 1.534%.
Market participants were also focussed on Washington, with lawmakers still trying to agree on whether or not they should raise or suspend the US borrowing limit in order to avert a dangerous first-ever default on national debt. The Treasury Department cautioned lawmakers last week that they needed to address the debt ceiling before 18 October, when officials estimate that the US will have exhausted emergency efforts to honour bond payments.
On the macro front, the US international trade balance in August was -$73.3bn, according to the Census Bureau, a widening from the prior month’s print of -$70.3bn as imports rose 1.4% to $287.0bn and exports only increased 0.5% to $213.7bn.
Elsewhere, IHS Markit‘s September services PMI weakened modestly to 54.9 in September from 55.1 in August, while the composite PMI declined from 55.4 to 55.
Lastly, the ISM‘s services PMI ticked up just 0.2% in September to 61.7%, the index’s 16th consecutive monthly gain.
In the corporate space, Facebook shares closed higher after slumping almost 5% on Monday as a result of a mass outage caused by “configuration changes on the backbone routers” and whistleblower claims, while PepsiCo raised full-year revenue guidance after reporting an earnings beat despite slowing beverage sales.
Also in company headlines, Johnson & Johnson revealed it will seek regulatory approval in the US for a booster shot for its Covid-19 jab after a Phase III study found a booster given 56 days after the first dose provided 94% protection against moderate to severe/critical cases and 100% protection against severe/critical infection.