Stocks recovered from an early decline to settle higher on Tuesday, as Wall Street welcomed more modest changes in the bond market following a recent jump in Treasury yields that dragged on the market.
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The S&P 500 increased 0.9% after falling 0.7% in the first half. By the afternoon, the selling had subsided, with technology stocks reversing direction and rising. The benchmark index had lost five consecutive days and hadn’t had a winning day since the first trading day of the year when it reached an all-time high.
The Dow Jones Industrial Average gained 0.5%, while the Nasdaq Composite gained 1.4%. Smaller firm stocks recovered as well, propelling the Russell 2000 up 1.1%.
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Bond yields, which have climbed substantially since the start of the year, have begun to fall. The 10-year Treasury yield slipped to 1.74% from 1.77% late Monday. Interest rates on mortgages and other consumer loans are influenced by yields.
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The S&P 500 increased 42.78 points to 4,713.07, while the Dow increased 183.15 points to 36,252.02. The Nasdaq increased by 210.62 points to 15,153.45, while the Russell 2000 increased by 22.85 points to 2,194. So far this month, all of the indices are in the red.
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Since late Monday, when a late-afternoon comeback for the sector cut much of the overall market’s losses, technology stocks have been bumpy. Apple gained 1.7%, while chipmaker Nvidia gained 1.5%.
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Communication stocks, as well as a mix of retailers and other industries that rely on direct consumer spending, increased in value. Meta Platforms, Facebook’s parent company, increased by 1.9%, while Gap increased by 3%.
Energy futures prices increased. The price of crude oil in the United States increased by 3.8%, boosting energy stocks. Exxon Mobil increased by 4.2%. Utilities and other less risky investments have declined.