Stocks Bounce After Extended Selloff, Led by Tech Sector

Technology companies led a broad upswing in U.S. stocks Tuesday, as investors scooped up shares following recent declines.

The Dow Jones Industrial Average added nearly 200 points in its biggest jump since late April. Some of Tuesday's biggest gainers were stocks that were hit hard in recent sessions, including shares of brick-and-mortar retailers and semiconductor companies.

Threats between the U.S. and North Korea, as well as turbulence in Washington that amplified investors' doubts about the Trump administration's ability to enact agenda items like a tax overhaul, have weighed on stocks this month. The Dow Jones Industrial Average shed 418 points in the two weeks ended Friday.

But those concerns appear to be easing this week, investors and analysts said, with stocks drawing support from a strong earnings quarter, steady economic growth and slightly more attractive valuations following recent share declines.

"It's the strength of the economy, not just here, but globally, that matter most to stocks," said Lew Piantedosi, director of growth equity for Eaton Vance.

"Earnings have been reasonably healthy for the last few quarters, too," he said.

The Dow Jones Industrial Average gained 196.14 points, or 0.9%, to 21899.89 Tuesday. The S&P 500 added 24.14 points, or 1%, to 2452.51, and the Nasdaq Composite gained 84.35 points, or 1.4%, to 6297.48, its biggest gain since June 28.

Technology companies in the S&P 500 rose 1.5%. Semiconductor company Lam Research added $5.41, or 3.4%, to $163.81, and Western Digital added 2.79, or 3.3%, to 86.65.

Cisco Systems -- which shed 4% in Thursday's selloff -- gained 59 cents, or 1.9%, to 31.27.

Retailers were on the rebound, too. Shares of Macy's gained 89 cents, or 4.6%, to 20.42 after the company said it hired a senior eBay executive and streamlined its top management.

Shoe retailer DSW rose 2.74, or 17%, to 18.43 after it posted same-store sales growth for the first time in six quarters.

The SPDR S&P Retail exchange-traded fund rose 1.4% after declining 3.7% last week.

Investments considered to be relatively safe stores of value, including gold and U.S. Treasury bonds, retreated.

Government bond prices edged lower, with the yield on the 10-year U.S. Treasury note rising to 2.215% from 2.182% on Monday. Yields rise as prices fall.

Gold for August delivery fell 0.4% to $1,285.10 a troy ounce -- its biggest decline in a week.

Investors also were looking ahead to the Jackson Hole economic symposium that kicks off Thursday, where the roster of top central bankers was set to include Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi.

Investors were 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.

"We've been conditioned to expect something out of Jackson Hole each year," said Krishna Memani, OppenheimerFund's chief investment officer. "If there is a surprise, it'll come from [Mr.] Draghi."

Stocks beyond the U.S. were mostly higher Tuesday. The Stoxx Europe 600 rose 0.8%, buoyed by gains in mining shares. Stock markets in the Asia-Pacific region mostly pushed higher, but Japan's Nikkei Stock Average slipped less than 0.1%, notching its 11th decline in 13 trading sessions.

Write to Michael Wursthorn at and Christopher Whittall at

(END) Dow Jones Newswires

August 22, 2017 17:33 ET (21:33 GMT)