WASHINGTON (dpa-AFX) - Following the sell-off seen in the previous session, stocks have shown a strong move back to the upside during trading on Tuesday. The major averages have all moved sharply higher, with the Dow and the Nasdaq rebounding after closing lower for four consecutive sessions.
In recent trading, the major averages have reached new highs for the session. The Dow is up 755.59 points or 2.0 percent at 38,926.00, the Nasdaq is up 332.07 points or 2.1 percent at 16,202.96 and the S&P 500 I sup 97.53 points or 1.9 percent at 5,255.73.
The rally on Wall Street comes as some traders look to pick up stocks at reduced levels following the steep drop seen on Monday.
Stocks showed a substantial move to the downside during Monday's session amid lingering trade war concerns and President Donald Trump's continued attacks on Federal Reserve Chair Jerome Powell.
The markets have also benefitted from a positive reaction to some of the latest earnings news, with shares of 3M (MMM) soaring by 7.7 percent after the manufacturing conglomerate reported better than expected first quarter results.
Aircraft engine supplier GE Aerospace (GE) has also spike by 4.3 percent after reporting first quarter earnings that exceeded analyst estimates.
Electric vehicle maker Tesla (TSLA), which is among the companies due to report their quarterly results after the close of today's trading, has also shot up by 4.0 percent.
On the other hand, defense contractor Lockheed Martin (LMT) has come under pressure despite reporting first quarter results that exceeded expectations on both the top and bottom lines.
Shares of Halliburton (HAL) have also plunged by 7.7 percent even though the oil service giant reported first quarter earnings in line with analyst estimates.
Sector News
Retail stocks are turning in some of the market's best performances on the day, resulting in a 3.1 percent surge by the Dow Jones U.S. Retail Index.
Considerable strength is also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index jumping by 2.4 percent and 2.2 percent, respectively.
Housing, utilities and semiconductor stocks are also seeing significant strength, moving back to the upside along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index dipped by 0.2 percent, while China's Shanghai Composite Index rose by 0.3 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is up by 0.3 percent, the French CAC 40 Index and the German DAX Index both down 0.2 percent.
In the bond market, treasuries are seeing modest strength after ending the previous session firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 4.391 percent.
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