Stocks closed broadly higher Tuesday as Wall Street regained its footing a day after the market had its biggest decline in a year.
The bounce pushed the Dow Jones industrial average more than 300 points higher and snapped a six-day losing streak for the market, though the benchmark S&P 500 recouped only a little more than a third of the losses from Monday.
China’s decision to stabilize its currency put investors in a buying mood Tuesday. News that China allowed its currency to depreciate against the dollar to its lowest level in 11 years sparked Monday’s steep stock market sell-off.
The move helped allay some of the market’s jitters over the escalating dispute between the world’s largest economies at a time when investors are anxious about falling U.S. corporate profits and a global economy that’s showing signs of slowing.
“We’re getting a nice move here, but if you look at what the tone of the market might be for the next few days it still could be under some pressure,” said Jeff Kravetz, regional investment director for U.S. Bank Wealth Management. “Right now investors are quite nervous and the reason for the nervousness is not only the trade issue, but we’re also seeing weakening economic data, not only here, but overseas.”
The S&P 500 index rose 37.03 points, or 1.3%, to 2,881.77. The index dropped 3% on Monday, its worst loss since December.
The Dow climbed 311.78 points, or 1.2%, to 26,029.52. The Nasdaq composite gained 107.23 points, or 1.4%, to 7,833.27. The Russell 2000 index of smaller companies picked up 14.67 points, or 1%, to 1,502.09.
Stock indexes in Europe finished sharply lower.
Investors have grown more nervous about the impact that the trade war between the U.S. and China could have on the economy and corporate profits. Those