U.S. stocks rose Tuesday, with the Dow Jones Industrial Average surging more than 300 points, after major averages the day before plunged more than 2 percent in what was the worst start to May since 1970.
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Wall Street appeared to have expected the worsening of tensions between the U.S. and China after Beijing said it would raise tariffs on $60 billion of U.S. imports in response to President Trump's tariff hike last week.
“What we are seeing in the markets is normal, and even to be expected after the great start we have had this year. It is also a completely rational adjustment to the potential impact of the trade war on future growth," Brad McMillan, chief investment officer at Commonwealth Financial Network, told FOX Business. "In the bigger picture, it is also completely normal, with more than half of all years showing declines worse than what we have right now. Remember, we saw bigger declines at the end of last year, only to see a rebound.”
|I:DJI||DOW JONES AVERAGES||26935.07||-159.72||-0.59%|
|I:COMP||NASDAQ COMPOSITE INDEX||8117.674437||-65.20||-0.80%|
Ride-hailing firm Uber’s stock rose; if it can hold gains through Tuesday's close it would be the first positive day for Uber as a public company, following Friday’s disastrous IPO where the stock fell 7.62 percent on Friday and 10.75 percent Monday. LYft shares also rose.
|UBER||UBER TECHNOLOGIES INC.||32.60||-1.22||-3.61%|
Gains were being led by technology stocks like Electronic Arts and Western Digital.
|EA||ELECTRONIC ARTS INC.||98.70||-0.99||-0.99%|
|WDC||WESTERN DIGITAL CORP.||60.68||-1.97||-3.14%|
The yield on the 10-year Treasury was flat at 2.41 percent.
Crude oil prices slipped modestly, with West Texas Intermediate, the U.S. benchmark, selling for $61 per 42-gallon barrel.
China’s Shanghai Composite closed down 0.69 percent, the Hang Seng was lower 1.50 percent and Japan’s Nikkei 225 ended off 0.59 percent.
Britain’s FTSE 100 was up 0.81 percent, France’s CAC 40 climbed 0.93 percent and Germany’s DAX rose 0.44 percent.