WASHINGTON (dpa-AFX) - After failing to sustain an initial move to the upside, stocks have shown substantial volatility over the course of the trading session on Tuesday. The major averages have pulled back well off their highs of the session and have recently being showing wild swings back and forth across the unchanged line.
The major averages have shown a strong move to the upside in the past few minutes and are currently posting notable gains. The Dow is up 343.80 points or 1.4 percent at 24,194.82, the Nasdaq is up 147.78 points or 1.9 percent at 8,098.45 and the S&P 500 is up 44.09 points or 1.6 percent at 2,790.65.
The initial strength on Wall Street was partly due to bargain hunting after the Dow and the S&P 500 experienced their biggest percentage drops since the 2008 financial crisis on Monday.
Traders looked to pick up stocks at reduced levels following the sharp drop seen in recent weeks, which dragged the Dow down to its lowest levels in over a year.
Positive sentiment was also generated in reaction to President Donald Trump's pledge to provide 'very substantial relief' amid the economic fallout from the coronavirus outbreak.
Trump told reporters Monday evening that he would be meeting with House and Senate Republicans today to discuss a possible payroll tax cut or other stimulus measures.
The president said he would also talk with GOP lawmakers about getting help for hourly wage earners, hinting at providing paid leave to those affected by the coronavirus.
Buying interest waned shortly after the start of trading, however, as traders expressed uncertainty about the timing and efficacy of Trump's proposed measures
Trump indicated he plans to hold another press conference later today to discuss the economic steps being taken, although administration officials told CNBC the White House is not ready to roll out specific economic proposals.
Sector News
Despite the pullback by the broader markets, software stocks continue to see significant on the day, with the Dow Jones U.S. Software Index surging up by 3.2 percent after ending the previous session at a four-month closing low.
Steel stocks also continue to see considerable strength, driving the NYSE Arca Steel Index up by 3 percent. The index ended Monday's trading at its lowest closing level in well over three years.
Notable strength also remains visible among transportation, retail, semiconductor and computer hardware stocks, which are all rebounding following yesterday's sell-off.
On the other hand, natural gas stocks have moved sharply lower over the course of the trading session, dragging the NYSE Arca Natural Gas Index down by 4.2 percent to its lowest intraday level in over sixteen years.
The continued weakness among natural gas stocks, which extends the sell-off seen on Monday, comes despite an increase by the price of natural gas.
Substantial weakness has also emerged among gold stocks, as reflected by the 2.1 slump by the NYSE Arca Gold Bugs Index.
Gold stocks are moving lower along with the price of the precious metal, with gold for April delivery plunging $20.50 to $1,655.20 an ounce.
Other Markets
In overseas trading, most stock markets across the Asia-Pacific region showed a notable turnaround over the course of the trading session on Tuesday. Japan's Nikkei 225 Index advanced by 0.9 percent, while China's Shanghai Composite Index surged up by 1.8 percent.
Meanwhile, the major European markets turned mixed over the course of the trading day. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the German DAX Index and the French CAC 40 Index fell by 0.8 percent and 0.9 percent, respectively.
In the bond, treasuries are giving back ground after moving sharply higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 13.9 basis points at 0.638 percent.
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