U.S. Stocks Close On Mixed Note; Nasdaq Climbs 1.8 Percent

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U.S. stocks ended on a mixed note on Tuesday after a volatile session, as fears about a possible recession and interest rate hikes by the Federal Reserve weighed on sentiment.

Growth fears outweighed news that U.S. President Joe Biden may announce a rollback of some US tariffs on Chinese imports.

Investors also looked ahead to the release of the minutes of the central bank's latest policy meeting, due on Friday, and the non-farm payrolls data, which is due out later in the week.

The major averages all fell sharply into the red early on in the session. The Dow regained substantial part of the lost ground and ended just modestly lower, while the S&P 500 finished with a marginal gain. The Nasdaq rebounded midway through the session, and kept moving higher as the day progressed to eventually close on a strong note.

The Dow rallied nearly 450 points from the day's low to settle at 30,967.82, recording a loss of 129.44 points or 0.42 percent. The S&P 500, which dropped to 3,742.06, settled with a gain of 6.06 points or 0.16 percent at 3,831.39.

The Nasdaq ended higher by 194.39 points or 1.75 percent at 11,322.24, rallying from a low of 10,911.45.

Data from the Labor Department showed near orders for manufactured goods increased 1.6 percent month-on-month in the month of May, following an upwardly revised 0.7 percent rise a month earlier.

Factory orders excluding transportation in the United States increased 1.7 percent month-over-month in May of 2022, following an upwardly revised 0.6 percent rise in April.

Energy stocks tumbled as crude oil prices fell sharply amid concerns about outlook for energy demand following a surge in Covid cases in China.

Chevron, Caterpillar, IBM, United Health and Travelers Companies dropped 2 to 3 percent.

Coca-Cola, Cisco Systems, Boeing, JP Morgan Chase, Johnson & Johnson and Procter & Gamble shed 1 to 1.7 percent.

Nike climbed more than 3 percent. Salesforce.com, Apple, Home Depot, Wallmart and Walt Disney closed higher by 1 to 2.3 percent.

In overseas trading, Asian stocks advanced on Tuesday after reports emerged that the United States may decide to cut some tariffs on Chinese imports in an effort to tame record-high inflation. Data showing China's services activity jumped to the highest level in nearly a year in June helped as well.

The major European markets closed sharply lower, weighed down by weak eurozone economic data. The pan European Stoxx 600 dropped 2.11 percent. The U.K.'s FTSE 100 drifted down 2.86 percent, Germany's DAX fell 2.91 percent, and France's CAC 40 declined 2.68 percent, while Switzerland's SMI ended 1.65 percent down

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