Stocks Enjoy Broad Rebound

The major averages in New York rebounded on Tuesday following a technology-centered market rout in the previous session.

The Dow Jones Industrials popped 311.75 points to 34,314.67, earning back all of Monday’s losses, having made back nearly all of Monday’s losses.

The S&P 500 progressed 45.26 points, or 1.1%, to 4,345.72

The NASDAQ Composite jumped 178.35 points, or 1.3%, to 14,433.83.

Mega-cap technology names were solidly in the green on Tuesday. Netflix rose 5.1%, Amazon gained 1% and Apple gained 1.4%, and Alphabet advanced 1.8%. Facebook shares rose 2.1% following a 5% slide on Monday due to a whistleblower’s claims and a site outage.

Energy stocks rose again as oil prices continued their climb. U.S. oil prices topped $79 per barrel on Tuesday. Chevron advanced 1.1% and Enphase Energy rose 1.6%.

Stocks tied to the economic recovery, like cruise lines, airlines, retailers and banks, also rose alongside the broader market. Norwegian Cruise Line popped 1.1%, Goldman Sachs rose 3.1%, and Wells Fargo added 2%.

Helping sentiment around the recovery, September Institute for Supply Management services Purchasing Managers Index rose to 61.9 from 61.7 in August, or two points better than expected.

In Washington, lawmakers are still trying to agree to raise or suspend the U.S. borrowing limit and avert a dangerous first-ever default on the national debt. The Treasury Department warned last week that lawmakers must address the debt ceiling before Oct. 18 when officials estimate the U.S. will exhaust emergency efforts to honor its bond payments.

Still, some believe the outlook for equities remain robust after the weak September as the economy continues to rebound from the COVID crisis.

Prices for 10-year Treasurys sagged, raising yields to 1.54% from Monday’s 1.48%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.60 to $79.22 U.S. a barrel.

Gold prices lost $6.80 to $1,760.80 U.S. an ounce.