US stocks rally after Monday’s rout
Michael Capolino, right, works with fellow traders on the floor of the New York Stock Exchange Tuesday, April 16, 2013. US stocks rallied strongly Tuesday as investors took Monday’s market rout as a buying opportunity. AP PHOTO/RICHARD DREW
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.
