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Stocks Rebound After Recent Weakness, Close On Firm Note

wallstreet up 032918 22sep20 lt

Despite worries about a surge in coronavirus cases and fresh lockdown measures in parts of Europe, and continued uncertainty about a new relief package in the U.S., stocks closed on a firm note on Wall Street on Tuesday.

It was a weak start for the major indices with stocks staying largely sluggish in cautious trade, but key shares from the technology space recovered around mid-morning and kept moving higher as the day progressed.

The broad market was a bit subdued till an hour past noon, but started edging higher thereafter.

The Dow ended with a gain of 140.48 points or 0.52 percent at 27,288.18, about 300 points off the session's low. The S&P 500 climbed up 34.51 points or 1.05 percent to 3,315.57, while the Nasdaq surged up 184.84 points or 1.71 percent to 10,963.64.

The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."

"A full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities," Powell said in prepared remarks before the House Financial Services Committee.

He added, "The path forward will depend on keeping the virus under control, and on policy actions taken at all levels of government."

U.S. Treasury Secretary Steven Mnuchin said the White House continues to seek an agreement with both parties in Congress on another fiscal relief package.

Nike (NKE) shares soared nearly 15 percent. Microsoft (MSFT) surged up about 2.3 percent. Visa (V), Walt Disney (DIS), Apple (AAPL), Caterpillar (CAT) and Coca-Cola (KO) also closed notably higher.

DuPont (DWDP), General Electric (GE), Goldman Sachs (GS) and JP Morgan Chase (JPM) closed weak.

A report released by the National Association of Realtors said existing home sales in the U.S. climbed to their highest level in nearly fourteen years in the month of August, jumping 2.4 percent to an annual rate of 6.000 million. Sales were up 24.7 percent a month earlier. The continued increase in sales matched economist estimates.

The major Markets in Europe closed on a firm note, while markets across the Asia-Pacific region ended mostly lower.

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