Dow jumps 236 points, S&P, Nasdaq see broad rally

Crude oil surges to highest close since July 30

U.S. stock indexes picked up momentum in a broad rally as investors weighed the Federal Reserve's tapering schedule against tax hikes to help pay for President Biden's ambitious spending plan. 

The Dow Jones Industrial Average jumped 236 points or 0.68%, while the S&P 500 index and the Nasdaq Composite index ticked up 0.85% and 0.82%, respectively. 

The gains came a day after the Dow and the S&P both fell for the sixth time in seven sessions amid concerns a slowdown in inflation could cause the Fed to begin tapering later this year. Investors also fretted over proposed tax hikes that would help pay for Biden’s $3.5 trillion spending package.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34798 +33.18 +0.10%
SP500 S&P 500 4455.48 +6.50 +0.15%
I:COMP NASDAQ COMPOSITE INDEX 15047.699032 -4.54 -0.03%

In stocks, energy-related names paced the advance as West Texas Intermediate crude oil surged by $2.15 to $72.61 a barrel, closing at its highest level since July 30. 

Ticker Security Last Change Change %
XOM EXXON MOBIL CORP. 57.59 +0.51 +0.89%
CVS CVS HEALTH CORP. 84.71 -0.15 -0.18%

Microsoft Corp.’s board of directors authorized a stock buyback program of $60 billion and raised the company’s quarterly dividend by 11% to 62 cents per share. 

Ticker Security Last Change Change %
F FORD MOTOR CO. 13.78 +0.07 +0.51%
GM GENERAL MOTORS CO. 52.23 +0.31 +0.60%
TSLA TESLA, INC. 774.39 +20.75 +2.75%
AMZN AMAZON.COM, INC. 3,425.52 +9.52 +0.28%

Automakers saw a boost including Ford, GM and Tesla on reports electric vehicle maker Rivian, which is backed by Amazon, is planning an initial public offering which may raise $8B, according to Reuters. 

Ticker Security Last Change Change %
MSFT MICROSOFT CORP. 299.35 -0.21 -0.07%

Wynn Resorts Ltd., Las Vegas Sands Corp. and MGM Resorts International remained under pressure after Macau’s government tightened regulations over casino operators. Shares of the three companies lost between 3.9% and 11% on Tuesday. 

Ticker Security Last Change Change %
WYNN WYNN RESORTS LTD. 82.88 -0.95 -1.13%
LVS LAS VEGAS SANDS CORP. 36.90 -0.38 -1.02%
MGM MGM RESORTS INTERNATIONAL 44.62 -0.03 -0.07%

Coinbase Global Inc. raised the size of its previously announced debt offering by $500 million to about $2 billion. The cryptocurrency exchange operator plans to use the money raised to invest in product development and potential mergers and acquisitions.  

Ticker Security Last Change Change %
COIN COINBASE GLOBAL, INC. 231.82 -5.68 -2.39%

Overseas markets were broadly lower. 

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European bourses were weaker across the board with France’s CAC 40 tumbling 1.04%, Germany’s DAX 30 sliding 0.68% and Britain’s FTSE 100 slipping 0.25%. 

In Asia, Hong Kong’s Hang Seng index plunged 1.84%, Japan’s Nikkei 225 fell 0.52% and China’s Shanghai Composite index lost 0.18%.