Stocks surged broadly on Wall Street Tuesday, gaining back
some of the ground they lost in their worst weekly drop since the beginning of
the pandemic.

The S&P 500 gained 89.51 points or 2.44% to 3,764.35 as
of 10:18 a.m. Eastern time zone. The Dow Jones Industrial Average rose 523.86
points or 1.75% to 3.,412.64. The Nasdaq Composite jumped 335.75 points or
3.11% to 11,134.10.

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Technology stocks led to much of the market gains. Apple
jumped 3.6% and Microsoft rose 2.5%.

Banks, retailers, and health care companies also made solid
gains. Kellogg rose 2.1% after the maker of Frosted Flakes and Rice Krispies
said it would split into three companies. Spirit Airlines rallied 7.3% after
JetBlue sweetened its buyout offer for the budget airline.

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European markets were also higher and Asian markets ended
mixed overnight. The yield on the 10-year Treasury rose 3.30% from 3.23% late
Friday. Markets were also closed on Monday for the observation of Juneteenth.

Over 90% of stocks within the benchmark S&P 500 index
gained ground. The index is still under a slump, along with every other major
index, and is down around 22% from the record high it set in January.

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Stocks have been generally falling as investors adjust to
higher interest rates that the Federal Reserve and other central banks are
increasingly doling out. The aggressive rate hikes are part of a plan to curb
record-high inflation, but investors are concerned that Fed risks slowing
economic growth too much and bringing on a recession.

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Last week, the Fed raised its key short-term interest rate
by three times the usual amount for its biggest increase since 1994. It has
also started allowing some of the trillions of dollars of bonds it purchased
through the pandemic to roll off its balance sheet. That should put upward
pressure on longer-term interest rates and is another way central banks are
pulling out supports earlier propped underneath markets to bolster the economy.

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The Fed’s measures are happening as some discouraging
signals have emerged about the economy, including reducing spending at
retailers and soured consumer sentiment. That has increased concerns the Fed’s
actions could stop being too aggressive.

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Investors will be closely watching for hints about the
Fed’s plans for possible additional rate hikes when Chair Jerome Powell speaks
before congressional committees this week.