Stocks End Higher on Wall Street, Shattering 3-Day Crisis | Taiwan News

Stocks closed sharply higher on Wall Street on Tuesday, more than regaining the ground they lost the day before. The S&P 500 rose 1.8%, the Dow Jones Industrial Average rose 1.6%, and the Nasdaq rose 2.4%. Small business stocks rose even more than the rest of the market, indicating that investors are feeling more optimistic about the economy. Tech stocks performed particularly well. The prices of ultra-safe US government bonds have fallen, leading to higher yields. Energy prices have also increased. Nike, one of the 30 stocks in the Dow Jones, jumped 6.1% after posting strong quarterly results.

THIS IS A CURRENT UPDATE. AP’s previous story follows below.

Shares are higher on Wall Street on Tuesday after three days of losses sparked by concerns about the spread of the omicron variant and lingering worries about rising inflation.

The S&P 500 Index rose 1.7% at 2:51 p.m. EST. The Nasdaq rose 2.3%. Both indices were boosted by strong gains in tech stocks. Micron Technology jumped 10.4% after the chipmaker gave investors encouraging earnings forecasts.

The Dow Jones Industrial Average rose 527 points, or 1.5%, to 35,459. Nike, one of the 30 stocks in the Dow Jones, jumped 6.4% after posting strong quarterly results.

Bank stocks were helped by rising bond yields. The 10-year Treasury yield rose to 1.49% from 1.42% on Monday night. Citigroup gained 1.6%.

US crude oil prices rose 3.8% and helped drive energy stocks higher. Chevron rose 1.7%.

Small company stocks rose more than the rest of the market, indicating that investors are feeling a little more optimistic about the economy. The Russell 2000 rose 2.7%.

The gains follow several days of weakness for major indices as investors assess the impact of skyrocketing COVID-19 cases as the omicron variant spreads rapidly. Countries in Europe and Asia have put in place various restrictions aimed at reducing the spread and investors are worried about the impact on the global economy.

The latest wave of coronavirus adds to lingering concerns about the impact of rising inflation on economic growth. Supply chain shortages and higher raw material costs hit companies, which passed the higher costs on to consumers. Consumer prices in the United States rose 6.8% in November from a year earlier, marking the fastest rise in inflation in nearly four decades.

Rising inflation has also prompted the Federal Reserve to speed up the withdrawal of its aid to the markets and the economy and put interest rate hikes on investor radar in 2022. The interest rate prospect Higher interest has added some turmoil to the wider market as investors move money around, especially high-value tech stocks.

“We’re not out of the woods yet and we’ll likely see more volatility by the end of the year,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

Janice J. Kostka