Highlights
Stocks rebounded Tuesday with risk appetite recovering and technology shares that led the selloff on Monday finding buyers. The Dow Jones industrial average and the broader S&P 500 both gained 0.8 percent and the Nasdaq was up 1.0 percent. US Treasury yields were mostly higher in a reversal of Monday's risk-off move. Oil prices and the dollar declined.
Software shares that have been selling off lately on AI fears saw bargain-hunting Tuesday. Meanwhile, AMD rallied to lead chipmakers after Meta said it would buy chips from the embattled US semiconductor company. Other big tech stocks were mostly higher too.
Investors are still digesting fallout from the latest tariff news with some seeing benefit in lower tariff rates for China, among others, even if Europe is slated to see higher tariffs under President Trump's latest plan to impose 15 percent import tax across the board. Markets remain on edge over Trump's threat to attack Iran with investors expected to watch closely Trump's address to Congress Tuesday night.
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.