H&W in the Media
Stocks rally more than 2%, S&P out of correction territory after selloff
U.S. stocks jumped more than 2 percent on Tuesday, attempting a bounce after the Dow’s worst three-day point drop in history, as a recovery in oil prices and overnight easing in China helped investor sentiment.
The Dow Jones industrial average traded about 350 points higher after earlier rising more than 425 points. Apple surged nearly 6 percent, leading all blue chips except Merck and Verizon higher.
The Nasdaq outperformed, up about 3.3 percent but off an initial jump of more than 3.5 percent as Netflix and Chinese stocks such as JD.com and Baidu led advancers. Alibaba gained more than 4 percent.
The S&P traded briefly gained more than 2.5 percent and held out of correction territory on an intraday basis. In the open, no stocks in the index hit new 52-week highs or lows, after about 200 names hit new 52-week lows Monday.
However, the gains fell short of recouping Monday’s more-than-3.5 percent plunge and the Dow remains on pace for its biggest monthly percentage loss since February 2009 and the Nasdaq since 2008. The S&P 500 is on track for its largest percentage loss since May 2010
“It’s not as great as a bounce that many were anticipating,” said Kevin Mahn, chief investment officer at Hennion and Walsh. “I think obviously the market sold off far more than it should have.”
“We kind of dipped into that correction territory but we’re not going to stay there,” he said, noting the S&P 500 should trade more in pullback territory between 5 to 10 percent than in correction mode, between 10 to 20 percent lower.
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