Novogratz on crypto volatility: investors now value identity
By Anneken Tappé
Stocks rebounded on Tuesday, rallying at all levels as Wall Street tries to bounce back from a massive selloff earlier in the week.
By noon, the Dow Jones was up some 415 points, or 1.2%, while the S&P 500 was up 1.3%. The Nasdaq Composite climbed 1.4%.
In fact, everything is going up: As stocks rebound, the yield on 10-year US Treasury bonds also continues to rise, and was up to 1.53% around noon. Bond yields and prices move in the opposite direction of each other.
Elsewhere, Bitcoin crossed the $ 50,000 threshold for the first time in four weeks.
Tech stocks led the losses on Monday, but on Tuesday they were among the biggest gainers. Inflationary concerns, which weighed on the sector over the past month, were unable to dampen tech stocks on Tuesday, as investors took the opportunity to buy stocks at a discount.
Facebook is also back in the green, with a stock up 2%. The company had its worst day in nearly a year on Monday, when stock prices fell about 5%. The social media giant faced outages across multiple platforms on Monday, and a whistleblower testified before lawmakers on Tuesday.
The energy sector also received a big boost on Tuesday, as higher prices for oil and natural gas around the world continued to push up energy stocks.
That said, Tuesday’s rally is widespread, with real estate being the only sector in the S&P to be in the red.
“Other than the fact that it’s Tuesday and we had a big sale yesterday, there really isn’t much to do this morning,” Bespoke Investment Group market analysts said in a note.
This is not the first time that the market has rocked sharply a few days after a massive sell-off. It’s just the state Wall Street is in right now.
On the one hand, investors have cause for concern: the pace of the recovery as winter approaches, rising inflation, potentially higher taxes, the Washington debt drama, Evergrande …
But any time any of these concerns abate, the market is once again on track to new highs.
Economic data was mostly supportive of Tuesday’s rally. The Institute for Supply Management index, which tracks the service industry, rose faster than expected in September.
Meanwhile, data from IHS Markit revealed that while the service sector grew last month, it was “the smallest increase in new business in 13 months and labor shortages. work have hampered the growth of production “.
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