Stocks are in rally mode on Tuesday.
After a sharp sell-off on Monday, stocks opened the day higher and while they are off their best levels of the day near 2:00 pm ET, the major US indexes are all higher by more than 1%.
In an afternoon email, Rich Barry, a floor governor at the New York Stock Exchange and one of the staunchest stock market bulls we know, cited two big catalysts behind the rally in Tuesday:
- The People’s Bank of China move to cut interest rates.
- Goldman Sachs’ note to clients that re-affirmed the bank’s view that a global recession is not on the horizon.
“In other words,” Barry wrote, “no need to panic.”
Near 2:10 pm ET, the Dow was up 222 points.