After four days of losses, the S&P 500 broke its losing streak on Tuesday. Shares rose during the trading session, allowing stocks to recover from the sell-off during the previous session.
The S&P ended the session at 3,315.57, or 1.1 percent higher. Meanwhile, the Nasdaq also saw gains of 1.7 percent, ending at 10,963.64. The Dow also soared ahead, albeit only slightly higher at 0.5 percent, advancing 140.48 points to 27.288.18. It was the first time in the past five days that the Nasdaq and S&P 500 posted gains. The Dow snapped its three-day slump.
Amazon led the tech sector, rising 5.7 percent, its most significant one day win since July 20. The rally was fueled by a Bernstein analyst who upgraded the e-commerce company from hold to buy.
Microsoft and Facebook also saw gains of more than 2 percent each. Netflix saw a smaller advance of 0.8 percent.
Investors seem to have been encouraged by the Federal Reserve’s promise to support the economy, even as new fears of a COVID-19 resurgence have come into play. Boris Johnson, U.K. Prime Minister, announced that there would be more restrictions in his country to mitigate the virus’s spread. He said the U.K. was at a turning point while ordering bars and restaurants to reduce their hours.
The three major averages started off low after hearing his remarks. Traders have been fearful that the reopening process might be reversed should the same happen in the U.S.
In Monday’s session, the Dow posted its largest daily loss since September 8. Investors have been concerned that there has been no new fiscal relief from Congress and most would like to see it well before the election. A potential Supreme Court battle to replace Justice Ruth Bader Ginsburg also has investors worried.
Overall, September hasn’t been a good month for Wall Street. The Dow has lost 4 percent for the month thus far, while the S&P is 5 percent lower. The Nasdaq is also down by 6.9 percent.
JJ Kinahan, a TD Ameritrade strategist, said: “There’s no reason to think this won’t keep being a choppy market. Coronavirus overshadow’s everything right now. There’s no end date for that. You don’t know when you’ll get a resolution to that.”