On Tuesday, all three key indices of Wall St. had closed out the session strongly a day after witnessing a widespread plunge, snapping out a multi-day losing streak, as a barrage of upbeat earnings’ report alongside a revivified optimism over economy recovery, had restored risk-appetite up to some extent, helping banks, transports and small caps outperform.
On top of that, a slew of Wall St. stock indices had rounded off in a jubilant tone with all three major indices climbing more than 1.5 per cent as trade-sensitive Dow led the tally of gains a day after witnessing the worst intra-session fall in more than nine months.
Aside from that, the Wall St. bellwether S&P 500 had eked out hefty gains after four straight session of losses, while Nasdaq had reported gains after six session. In factuality, in the day’s steep gains in the Wall Street, was almost entirely prodded by a buy-the-dip approach from the traders as the economically sensitive small caps alongside transports had led the charges following a session of deep decline, while US Treasury notes had also bounced back from a five-month low of 1.17 per cent bottomed yesterday.
Wall St. ends higher as investors ‘buy the dip’
Citing statistics, in the day’s Wall St. closing bell, trade sensitive Dow shot up 1.62 per cent to 34,511.99 and benchmark S&P 500 jumped 1.52 per cent to 4,323.06, while tech-heavy Nasdaq soared 1.57 per cent to 14,498.88.
Meanwhile, addressing to an uneven recovery in US economy, Chief Executive of Horizon Investment Services in Hammond, Indiana, Chuck Carlson said, “It’s a buy-the-dip mentality coming into the market. The economically sensitive stocks are up today……When the 10-year (Treasury yield) goes down in a short period of time, that typically doesn’t happen with an economy that’s supposed to be growing.
Firming in the 10-year (yield) indicates that perhaps the economy isn’t going to be falling off a cliff……Things like the Delta variant can certainly impact in the margins. It doesn’t take a whole lot of fear in some investors to create what we saw yesterday”.