Dow climbs 550 points as stock market bounces back
U.S. equity markets clawed back the lion’s share of their previous day’s losses as stocks battled back after the Dow suffered its steepest one-day decline in almost nine months.
The Dow Jones Industrial Average rose 550 points, or 1.62%, while the S&P 500 and the Nasdaq Composite advanced 1.52% and 1.57%, respectively. The strong gains came a day after the Dow lost 725 points, booking its worst day since October, as a resurgence of COVID-19 infections and ongoing inflation concerns rattled investors.
Virgin Galactic Holdings Inc. and other space-related names were in focus after Amazon founder Jeff Bezos became the second billionaire to leave Earth’s atmosphere. Bezos’ Blue Origin LLC is not publicly traded.
In earnings, IBM revenue rose 3% over the prior quarter, the most in three years, amid strength in its cloud and consulting businesses. Both profit and revenue exceeded Wall Street estimates.
Halliburton Co. reported quarterly profit climbed 33% as a rebound in crude oil prices spurred demand for oilfield services.
Netflix Inc., Chipotle Mexican Grill Inc. and United Airlines Holdings Inc. are all set to release their quarterly results after Tuesday’s closing bell.
In commodities, West Texas Intermediate crude oil gained $1 to $67.42 a barrel and gold advanced $2.20 to $1,810.90 an ounce.
Overseas markets were mixed.
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In Asia, Japan’s Nikkei 225 slid 0.96%, Hong Kong’s Hang Seng Index fell 0.84% and China’s Shanghai Composite lost 0.07%.