Highlights
A recovery in bank stocks and risk appetite helped equities rebound Tuesday. The major indexes did retreat from their best levels in the afternoon after news of an incident involving Russian fighter jets downing an unmanned US spy plane.
The Dow Jones industrial average rose 1.1 percent, the S&P 500 gained 1.7 percent, and the NASDAQ rallied 2.1 percent. US Treasury yields rebounded after three days of dramatic declines as the flight from risk on bank fears dissipated. The dollar rose while oil prices dropped.
US government measures to provide a backstop for banks appeared successful in reassuring investors, a key step in stabilizing markets, which appeared oversold after five consecutive days of losses. Steadier banks and an as-expected moderately hot reading on US consumer prices restored expectations for the Federal Reserve to proceed with at least a 25 basis point rate increase next week.
Megacap stocks again provided leadership to the upside but gains were across the board. Best sectors were consumer discretionary, communications services, information technology, and finance. Lagging but still higher were consumer staples, health care, energy, and real estate. In communications services, Meta was the day's big winner after announcing layoffs in a cost-cutting drive.
The Dow Jones industrial average rose 1.1 percent, the S&P 500 gained 1.7 percent, and the NASDAQ rallied 2.1 percent. US Treasury yields rebounded after three days of dramatic declines as the flight from risk on bank fears dissipated. The dollar rose while oil prices dropped.
US government measures to provide a backstop for banks appeared successful in reassuring investors, a key step in stabilizing markets, which appeared oversold after five consecutive days of losses. Steadier banks and an as-expected moderately hot reading on US consumer prices restored expectations for the Federal Reserve to proceed with at least a 25 basis point rate increase next week.
Megacap stocks again provided leadership to the upside but gains were across the board. Best sectors were consumer discretionary, communications services, information technology, and finance. Lagging but still higher were consumer staples, health care, energy, and real estate. In communications services, Meta was the day's big winner after announcing layoffs in a cost-cutting drive.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
