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Stocks rebounded Tuesday, recovering some of the steep losses of the prior trading session that sent both the Dow Jones Industrial Average and the S&P 500 down more than 2%.
The Dow recovered 308.75 points, or 1.3%, by noon to 23,901.73, led higher by gains in Boeing and Johnson & Johnson.
The S&P 500 gained 25.2 points, or 1%, to 2,571.14, after falling to a new closing low and touching a new intraday low for 2018 on Monday on fears the Federal Reserve is going too far with its rate-hiking plans.
The NASDAQ popped 86.45 points, or 1.3%, to 6,840.19, as Amazon, Apple and Netflix — which were hit hard on Monday — all traded higher. Facebook stock rallied 3.6% while Google-parent Alphabet added 3.1%.
Beaten-down chipmakers Nvidia and Advanced Micro Devices both rallied more than 3.5%. E-commerce giant Amazon — which sank nearly 4.5% on Monday — rallied 1.7% Aircraft and aerospace manufacturer Boeing jumped 4.4% after hiking its dividend by 20%.
Also helping sentiment was White House Press Secretary Sarah Sanders, who said that the Trump administration wants to avoid a partial government shutdown and has found alternative revenues to build President Donald Trump’s border wall.
The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 7% so far for the month. The S&P 500 is now in the red for 2018 by 4%.
The Federal Reserve is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 when it concludes a two-day policy meeting on Wednesday.
Stocks of energy companies fell across the board as oil prices sank 5% to a 15-month low on Tuesday. Exxon Mobil fell 1.5%, Chevron lost 1.1% and ConocoPhillips dropped 1.4% as the U.S. and Russia continue to pump at record levels ahead of planned output cuts by the Organization of the Petroleum Exporting Countries and its allies.
Prices for the benchmark for the 10-year U.S. Treasury grew, lowering yields to 2.83% from Monday’s 2.86%. Treasury prices and yields move in opposite directions
Oil prices dropped $2.43 to $47.45 U.S. a barrel.
Gold prices regained 30 cents to $1,252.10 U.S. an ounce.
