Stocks recovered from a sluggish start to the week with a wide rebound on Tuesday, as traders began to buy again following a string of losses on Wall Street.

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The S&P 500 gained 2%, with more than 90% of the businesses in the benchmark index gaining. The Dow Jones Industrial Average increased by 1.3%, while the Nasdaq increased by 2.8%.

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The rise was powered by huge tech firms, with Apple and Microsoft among the greatest beneficiaries. Small-company stocks surged faster than the rest of the market, indicating that investors are optimistic about the economy. Treasury yields increased.

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The S&P 500 rose 80.84 points to 4,088.85. The Dow gained 431.17 points to 32,654.59. The Nasdaq added 321.73 points to 11,984.52. The Russell 2000 index of smaller companies climbed 56.87 points, or 3.2%, to 1,840.30.

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The highly volatile technology accounted for a big slice of the S&P 500’s gains. Apple rose 2.5% and Microsoft rose 2%. Pricey stock values for many big technology companies give the sector more weight in pushing the broader market up and down.

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Health care companies also helped lift the market. Abbott Laboratories rose 4.4% after the company made a deal with regulators to ramp up production of baby formula amid a shortage.

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Banks gained ground along with rising bond yields, which they rely on to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 2.99% from 2.88% late Monday. JPMorgan Chase rose 3.3%.

Paramount soared 15.3% after Warren Buffett’s Berkshire Hathaway disclosed a new stake in the media company.

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The Commerce Department said U.S. retail sales rose 0.9% in April. The solid increase was driven by higher sales of cars, and electronics, and more spending at restaurants.

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The upbeat report helps allay some concerns on Wall Street about persistently high inflation crimping consumer spending and about the possibility that the economy could slip into a recession.

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Walmart, the nation’s largest retailer, fell 11.4%, its biggest percentage decline since 1987, after reporting disappointing earnings and trimming its profit forecast for the year, partly because of inflation pressures.

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Several other retailers also lost ground. Target fell 1.4% and Bath & Body Works slid 2.9%. Supermarket operator Kroger fell 3.7%.