Dow rallies more than 700 points in rebound as traders bet that the bottom is in
Stocks rallied Tuesday, with the market resuming a bounce from last month’s lows, as traders bet on strong corporate earnings reports, and wagered that markets have found a bottom.
The Dow Jones Industrial Average jumped 754.44 points, or 2.43%, to 31,827.05 — closing near the highs of the session as gains accelerated in the final hour of trading. The S&P 500 gained 2.76% to 3,936.69. The Nasdaq Composite rose 3.11% to 11,713.15.
All three major averages are above their 50-day moving averages for the first time since April. The broader market index is now 8% off its June lows.
Investors are betting that stocks have reached a bottom after their steep declines this year, and as the latest round of earnings reports showed businesses are working through economic pressures better than feared in the second quarter.
“Both investors and the companies were expecting hot inflation, so companies talking about hot inflation having happened in that second quarter was not a surprise at all,” said Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. “What was a surprise was that they were able to manage through it well.”
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