US stocks rally after Monday’s rout
NEW YORK—US stocks rallied strongly Tuesday as investors took Monday’s market rout as a buying opportunity.
At the closing bell, the Dow Jones Industrial Average jumped 155.81 (1.07 percent) to 14,755.01.
The broad-based S&P 500 increased 22.14 (1.43 percent) to 1,574.50, while the tech-rich Nasdaq Composite Index added 48.14 (1.50 percent) to 3,264.63.
The gains ended a two-day losing streak for US markets.
US markets reacted to solid housing starts data and good earnings reports from Coca-Cola, Johnson & Johnson and others. But markets were also primed to move higher after a sharp sell-off Monday following weak China economic data and the Boston explosions, which killed three and wounded more than 170.
“Markets got a little exuberant on the down side,” especially in the metals and mining sphere, said Mace Blicksilver, Marblehead Asset Management.
Tuesday’s gains were “a little bit of a reflex rebound from yesterday’s sell-off,” said Michael James, managing director of equity trading at Wedbush Morgan Securities.