Stocks have moved sharply higher in early trading on Tuesday, as traders pick up stocks at reduced levels following recent weakness in the markets. The major averages have shown strong upward moves, with the Dow and the S&P 500 bouncing off of three-month closing lows.
The early strength comes as traders go bargain hunting after Monday's sell-off, which caused the Dow to close below the 10,000 level for the first time since early November. However, there is not much significant news to support the buying interest.
Most of the major sectors have moved to the upside in early trading, with airline stocks posting particularly strong gains. United Airlines parent UAL Corp. (UAUA) is leading the sector higher after reporting an increase in January traffic.
Significant strength is also visible among resource stocks, which are moving higher along with commodities prices. Banking, networking, and railroad stocks are also posting notable gains.
At the top of the hour, trading could be impacted by the release of the Commerce Department's report on wholesale inventories in the month of December. Economists expect the report to show that inventories increased by 0.5 percent following a 1.5 percent increase in November.
In the past few minutes, the major averages have pulled back off their highs for the session, although they currently remain firmly in positive territory. The Dow is currently up 106.04 at 10,014.43, the Nasdaq is up 20.68 at 2,146.73 and the S&P 500 is up 11.25 at 1,067.99.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.