U.S. stocks rose on Tuesday, and the Dow fell on the fourth day as major averages struggled away from the onslaught of big sales.
The Dow Jones industrial average fell 84.96 points to 32,160.74, or 0.26%. The S&P 500 rose 0.25% to 4,001.05, while the Nasdaq Composite rose 0.98%, closing at 11,737.67.
On Tuesday, the market had difficulty choosing a direction in the volatile trading session, when key averages fluctuated between profit and loss. At one point the Dow rose more than 500 points, but later dropped to a session low of about 350 points.
“We’re in a market where you just can’t hold any rallies,” Paul Hickey of Bespoke Investment Group told CNBC’s TechCheck on Tuesday. “It’s not surprising given the general trends we’ve seen over the last few days, and I think we’ll just see more of that in the future.”
The downed technology stocks led to an increase on Tuesday. Microsoft and Apple gained more than 1%, while Intel and Salesforce added more than 2%. The sector has suffered some of the biggest losses in recent weeks as investors have moved from growth areas to safe havens, such as consumer products and utilities, amid fears of a recession.
Meanwhile, IBM fell nearly 4%. Home Depot, 3M and JPMorgan Chase slipped about 2%, dragging 30 Dow shares into the red.
“So far, this weakness has been driven by growth, technology and cyclicality, and while we expect further weakness and, indeed, underperformance, we now also see signs that the value space may be close to setting an important peak in absolute terms, in that while some key defense sectors are also threatening tops, ”wrote David Snedan of Credit Suisse.
Against the background of the sale, investors continued to look for signs of the bottom.
“We’ve noted a lot of frameworks you’d like to test on the road to correction,” said Art Hogan, National Securities ’chief market strategist. “Once you get to the nominal names of leaders, generals, you tend to find yourself in the later stages of this correction process.”
Some, including a hedge fund manager David Tepper, I think the sale is coming to an end. Tapper told Jim Kramer of CNBC on Tuesday that he expects the Nasdaq to stay at 12,000.
Treasury bond yields fell from multi-year highs, and 10-year treasury bond yields traded below 3% after reaching its highest level since late 2018 on Monday.
Much of the recent market movement has been driven by the Federal Reserve and how aggressively it will act to curb inflation. However, investors continued to monitor the current conflict in Ukraine and the closures in China.
“Without something making people feel that one of those pressures will ease, I think we have a market that feels mostly unmanaged,” said Tim Lesca of Mariner Wealth Advisors.
The move on Tuesday came after the S&P 500 fell below 4,000 to a low of 3,975.48 on Monday. It has become the weakest point of the index since March 2021. The broad market index fell about 17% from its 52-week high when Wall Street struggled to recover from losses last week.
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