Second Straight Comeback Falls Short

The Dow Jones Industrial Average recovered from a decline of more than 800 points for a second day in a row, an unusual burst of volatility that comes as the Federal Reserve is preparing investors for tighter monetary policy.

Still, the blue-chip index finished the day in the minus category 66.77 points to 34,297.73.

The S&P 500 dipped 53.68 points, or 1.2%, to 4,356.45.

The NASDAQ was bruised 315.83 points, or 2.3%, to 13,539.29.

Bank of America added 1.5% and Citigroup gained 2.1%. Occidental Petroleum, APA Corp and Halliburton all rose more than 7%.

American Express was the top gainer on the Dow and the S&P 500 after an earnings beat, adding 8.5%. Dow members IBM and Johnson & Johnson were also among the top gainers on the index after reporting quarterly results.

Tech shares traded off their lows, but most remained in the red. Nvidia, down 23% this year, was still down 3.7% on the day. Microsoft was down 1.8% ahead of its earnings report after the bell

General Electric was among the biggest decliners on the S&P 500 with a 6.1% loss after the company topped quarterly earnings expectations, but missed revenue estimates.

The Fed’s two-day policy meeting began Tuesday as investors look for updates on when the central bank will raise interest rates and by how much. Market participants expect the Fed to signal a rate hike as soon as March and more policy tightening on the table to address high inflation.

Investors also monitored geopolitical tension at the Russia-Ukraine border. President Joe Biden spoke with European leaders Monday amid fears of a possible Russian invasion of Ukraine.

Prices for 10-year Treasurys hesitated, raising yields to 1.78% from Monday’s 1.77%. Treasury prices and yields move in opposite directions.

Oil prices gained $2.06 to $85.37 U.S. a barrel.

Gold prices brightened $7.30 to $1,849.00 U.S. an ounce.