Stocks experienced a notable rebound on Tuesday, recovering from significant losses seen on Wall Street the day before. The Dow surged by 294 points, representing a 0.8% increase, with session highs reaching over 700 points. The S&P 500 also saw gains of 1%, while the Nasdaq Composite added 1% as well.
All 11 sectors of the benchmark index showed positive movement on Tuesday, with real estate, financials, and communication services leading the way. Despite the market's upward trajectory, it was unable to fully offset the losses incurred earlier in the week. The Dow and S&P 500 had recorded their worst day since 2022 due to concerns over a potential US economic recession following disappointing labor data.
The overall sentiment on Wall Street appeared to be more optimistic on Tuesday. The Cboe Volatility Index (VIX), which measures expected stock market volatility, dropped to 26. Additionally, the Fear & Greed Index, which assesses seven market sentiment indicators, remained in the 'extreme fear' zone but rose from 19 to 23 compared to Monday.
Oil prices also saw a rally, with West Texas Intermediate crude futures, the US benchmark, settling at around $73.20 per barrel. Meanwhile, Brent crude futures, the international benchmark, increased slightly to settle at $76.48 per barrel.
