Stocks Bounce After Extended Selloff, Led by Tech Sector

By Christopher Whittall and Ese Erheriene Features Dow Jones Newswires

U.S. stock indexes rose Tuesday morning, buoyed by gains in shares of technology companies and retailers.

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The Dow Jones Industrial Average gained 112 points, or 0.5%, to 21816 shortly after the opening bell. The S&P 500 added 0.6% and the Nasdaq Composite rose 0.8%.

The broad upswing extended gains for the Dow industrials after major indexes suffered their biggest two-week decline of the year. Tensions between the U.S. and North Korea, as well as questions over whether the Trump administration can enact key agenda items such as tax reform, have weighed on stocks in recent weeks.

"The byword seems to be exhaustion," said Larry Hatheway, global chief economist at Swiss money-manager GAM Holding.

Mr. Hatheway said he expects markets to remain range-bound given a lack of upside surprises in global growth and earnings -- what he says have been the two main drivers of the stock rally.

"There is some loss of momentum," he said.

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Retail stocks lifted broader indexes, with shares of Macy's rising 3.6% after the company said it hired a senior eBay executive and streamlined its top management.

Shoe-retailer DSW rose more than 20% after it posted quarterly same-store sales that exceeded expectations.

Technology stocks in the S&P 500 rose 0.9%, with Seagate Technology and Micron Technology posting among the biggest advances.

Investors are looking ahead to the Jackson Hole economic symposium later this week. The roster of top central bankers includes Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi, who will gather at the annual conference that kicks off Thursday.

Investors are watching for further details on the Fed's plans to scale back its balance sheet and clues on when the ECB could trim its asset purchases, which have helped underpin markets in recent years.

"Our view of the world at the moment is it's very much central bank dependent," said Iain Stealey, a portfolio manager at J.P. Morgan Asset Management. "The risk is they surprise to the hawkish side. The market isn't pricing in much in terms of rate hikes from the Fed."

Stocks beyond the U.S. were mostly higher Tuesday. The Stoxx Europe 600 rose 0.6%, buoyed by gains in mining shares. Stock markets in the Asia-Pacific region mostly pushed higher, but the Nikkei Stock Average slipped less than 0.1%, notching its 11th decline in 13 trading sessions.

Government bond prices edged lower, with the yield on the 10-year U.S. Treasury note rising to 2.203%, according to Tradeweb, from 2.182% on Monday. Yields rise as prices fall.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, rose 0.4% after declining slightly on Monday.

Michael Wursthorn and Kosaku Narioka contributed to this article.

Write to Christopher Whittall at christopher.whittall@wsj.com and Ese Erheriene at ese.erheriene@wsj.com

(END) Dow Jones Newswires

August 22, 2017 10:18 ET (14:18 GMT)