© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, USA, June 15, 2022. REUTERS / Brendan McDermid / File Photo
By Lewis Krauskopf, Devik Jane and Anisha Sirkar
(Reuters) – Major Wall Street indexes jumped on Tuesday as investors snatched stocks from a megacap and energy companies crashed last week over concerns about the global economic downturn.
All 11 major sectors rose as stocks recovered significantly after the benchmark last week saw its biggest weekly decline since March 2020.
Investors are trying to assess how far stocks could fall as they weigh the risks to the economy, with the Federal Reserve taking aggressive measures to try to curb rising inflation. The S&P 500 fell more than 20 percent this year after confirming it was in a bear market earlier this month.
“Do I think we have reached the bottom?” No. I think we will see more volatility, I think the process of reaching the bottom will probably take some time, “said Christina Hooper, chief global market strategist at Invesco. “But I think it’s a good sign to see the interest of investors.”
It increased by 585.65 points, or 1.96%, to 30,474.43, the S&P 500 increased by 89.9 points, or 2.45%, to 3,764.74 and added 301.06 points, or 2, 79%, at 11,099.41.
The energy sector, the S&P 500’s most profitable sector this year, rose more than 5 percent after falling last week.
Megacap shares Apple Inc (NASDAQ :), Tesla (NASDAQ 🙂 Inc and Microsoft Corp (NASDAQ 🙂 all rose solidly to give the biggest individual boost to the S&P 500.
Last week, the Fed approved its biggest rate hike in more than a quarter of a century to stem inflation.
Investors are referring to the testimony of Fed Chairman Jerome Powell before the US Senate Banking Committee on Wednesday for evidence of future interest rate hikes and his latest views on the economy.
Goldman Sachs (NYSE 🙂 now expects a 30% chance that the US economy will fall into recession next year, compared to its previous forecast of 15%.
Graphics: long-term – https://fingfx.thomsonreuters.com/gfx/mkt/zgpomdnwmpd/Pasted%20image%201655826597289.png
Kellogg’s news (NYSE 🙂 Co rose 3% after the cereal maker said it was splitting into three companies.
Spirit Airlines Shares of NYSE 🙂 jumped 9% after JetBlue Airways (NASDAQ 🙂 said on Monday it had improved its offer to persuade the ultra-low-cost carrier to accept its offer over rival Frontier Airlines.
Advanced emissions outperformed the declining NYSE by 3.95 to 1; of the Nasdaq, a ratio of 3.00 to 1 favors the advanced.
The S&P 500 publishes 1 new 52-week highs and 32 new lows; The Nasdaq Composite recorded 36 new highs and 90 new lows.