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Overnight Markets: US stocks halt selling spree to close higher

Technology, materials and consumer discretionary were the top-performing sectors.

 
Overnight Markets: US stocks halt selling spree to close higher

US stocks rebounded from the biggest one-day selloff in more than six years and closed roughly 2% higher on Tuesday, underscoring a new regime of volatility on Wall Street, as investors poured back into some of the most beaten-down sectors.

The Dow Jones Industrial Average added 567 points, or 2.33%, to 24,913, the S&P 500 gained 46 points, or 1.74%, to 2,695 and the Nasdaq Composite added 148 points, or 2.13%, to 7,116.

Tuesday’s wild gyrations saw the Dow swing more than 1,100 points from its low to its high and ended with the benchmark S&P 500 tallying its best day since just before President Donald Trump’s November 2016 election.

“We believe the selloff has mostly run its course and has created an opportunity to add risk,” said, Andrea Cicione, head of strategy at TS Lombard.

 “I don’t think the volatility is over,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago. “These types of moves tend to take about three weeks to get through the system ... and volatility just doesn’t suddenly settle down.”

Technology, materials and consumer discretionary were the top-performing sectors. Defensive sectors utilities and real estate were the only major S&P groups to end negative.

Apple climbed 4.2%, while Microsoft and Amazon gained 3.8% each.

General Motors Inc.’s shares gained 5.9% after the auto maker reported fourth-quarter earnings that beat expectations. Ford Motor Co. shares were also up 5.1%.

Micron Technology Inc. soared 11% after the stock was upgraded to overweight from sector weight at KeyBanc Capital.

Cirrus Logic Inc. shares were off 3.3% on concerns over Apple iPhone weakness. Allergan shares bounced back from earlier loss to rise 2% after posting results and a positive late-stage clinical trial of its migraine drug.

In Asia, stocks markets advanced early on Wednesday, retracing losses made in the last session, after major US indexes finished their Tuesday session higher.

Japan's Nikkei 225 jumped 3.22% in early trade following last session's 4.73% tumble. South Korea's Kospi advanced 0.04%. Over in Sydney, the S&P/ASX 200 bounced 1.30%.

In Hong Kong, the Hang Seng Index added 2.73%, while on the mainland, the Shanghai Composite Index rose 1.14%.

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