Wall Street earns more than 2% on a broad recovery

Major Wall Street indexes jumped more than 2% on Tuesday as investors grabbed shares of megacap companies and energy companies after the stock market fell last week amid concerns about the global economic downturn.

All 11 major sectors of the S&P 500 rose as stocks rose 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% from its highest level in January earlier this month, reaffirming the overall bear market definition.

“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.”

The Dow Jones Industrial Average rose 641.47 points, or 2.15%, to 30,530.25, and the S&P 500 rose 89.95 points, or 2.45%, to 3,764.79. IN Nasdaq Composite added 270.95 points, or 2.51%, to 11,069.30.

The energy sector, the S&P 500’s most profitable sector this year, rose 5.1 percent after falling last week. Each sector won at least 1%.

Megacap shares Apple Inc, Tesla Inc. and Microsoft All Corp grew solidly to give the biggest individual boost to the S&P 500. Apple rose 3.3 percent, Tesla jumped 9.4 percent and Microsoft added 2.5 percent.

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.

Investors are “trying to read the tea leaves to see how aggressive the Fed will become,” said Chuck Carlson, chief executive of Horizon Investment Services in Hammond, Indiana. “It’s hard to answer that question right now because they’re going to see what happens to the history of inflation.”

in the meantime, Goldman Sachs now expects a 30% chance that the US economy will fall into recession next year, compared to its previous forecast of 15%.

In the company’s news, Kellogg Co’s shares rose about 2% after the cereal maker said it was splitting into three companies.

Shares of Spirit Airlines jumped 7.9 percent after JetBlue Airways said on Monday it had improved its offer to persuade the ultra-low-cost carrier to accept its offer over rivals Frontier Airlines.

Advanced emissions exceed the number of decreasing ones NYSE with a ratio of 2.66 to 1; of the Nasdaq, a ratio of 2.22 to 1 favors the advanced.

The S&P 500 announces a new 52-week high and 32 new lows; Nasdaq Composite recorded 37 new highs and 122 new lows.

About 12.4 billion shares have changed hands in the United States, in line with an average of 12.4 billion daily shares over the past 20 sessions.

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