Wall Street rallies on hopes of economic recovery

UNITED STATES, WASHINGTON (EDUFINTECH) – US stocks closed sharply higher on Tuesday, recovering from several straight days of plunge as strong financial results and optimism about the economy boosted risk appetite.

“The buy-down mentality is emerging in the market,” said Chuck Carlson of Horizon Investment Services.

Economy-sensitive small-cap stocks and transportation were the top gainers.

The yield on 10-year US Treasuries rebounded from five-month lows. As a result, interest rate-sensitive bank shares rose 2.6%.

“Economically sensitive stocks are rising today,” added Carlson.

“When the (yield) of 10-year Treasury bonds declines in a short amount of time, this usually does not happen in an economy that is supposed to grow. The rise in (yield) of 10-year bonds indicates that the economy may not fall sharply.”

The Dow Jones index closed with an increase of 1.62% to 34.511.99 points, the S&P 500 index – by 1.52% to 4.323.06 points, the Nasdaq – by 1.57% to 14.498.878 points.

Halliburton shares rose 3.7% after the US-based company closed with a profit for the second quarter in a row thanks to a rebound in oil prices that fueled increased demand for oilfield services.

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