- Stocks jumped Tuesday as strong earnings and economic data lifted spirits on Wall Street.
- The three major US indices had shed about 4% during a sell-off last week.
- Watch US stocks trade in real time here.
Stocks rose sharply Tuesday as strong earnings reports helped lift spirits on Wall Street after one of the worst sell-offs in eight months.
The Dow Jones industrial average rallied as much as 1.5%, 0r more than 350 points, after ending lower four out of the five previous sessions. The Nasdaq Composite jumped nearly 2%, and the S&P 500 was up 1.5%.
Bank and healthcare companies led the way higher after posting better-than-expected financial reports for the third quarter. Boosted by investment banking revenue, Morgan Stanley and Goldman Sachs easily topped analyst forecasts. Johnson & Johnson also beat, helped by a jump in prescription sales.Netflix is expected to report after the bell.
Investors dumped relatively safe US government bonds, with yields on the 10- and 2-year notes edging higher.
“With both Treasuries and equities beginning to settle in to their new respective trading ranges, investors have been able to refocus their attention on earnings and other economic indicators,” said Scott Buchta, head of fixed-income strategy at Brean Capital.
Earlier Tuesday, the Labour Department said US employers posted the most jobs in nearly two decades in August.
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