Wall Street rebounds sharply after global market rout

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Wall Street Bounces Back After Steep Selloff


U.S. stocks rebounded sharply on Tuesday as investors sought out bargains a day after Wall Street turned in its worst performance in four years.

Markets also got a shot of good news with China's second interest rate cut in two months, but analysts stopped short of declaring that the worst was over.

"What we need to see to calm investors is positive economic data points out of China and only when we see that will the rallies be sustainable," said Xavier Smith, investment director at Centre Asset Management.

"Right now, it's pretty meaningless," he said of the interest rate cut.

All the three major Wall Street indexes were up more than 2 percent, with tech stocks and banks leading the way.

On Monday, the Dow Jones industrial average .DJI briefly slumped more than 1,000 points – its steepest intraday fall ever – and the S&P 500 recorded its worst day since 2011.

For the second consecutive day, the New York Stock Exchange invoked a rarely used rule in an effort to make it easier and faster to start trading at the opening in a volatile market.

"In the short term, the market was very oversold," said Adam Sarhan, chief executive of Sarhan Capital in New York.

"Global demand remains lackluster at best and while I expect the market to move mostly sideways, whatever action we are going to see today is going to be very sloppy."

Read reactions to the market nosedive:

21 PHOTOS
Black Monday stock market reaction on social media
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Wall Street rebounds sharply after global market rout
Don't panic. Hold your nerve. Sweat it out. Etc. Jeez. #BlackMonday
It's a good day to own nothing #blackmonday
Funny to call it #BlackMonday when entire market is in the red.
#BlackMonday Stock market crashing bigtime - just bought entire Exxon Corporation for $572. Want me to name an oil well after you?
#BlackMonday Is there a stock I can buy that is responsible for red fonts?! That seems like a winner today. http://t.co/xbDSkUFuv7
Since many working Americans don't have "portfolios" and spend everything they earn this is just another underpaid Monday. #BlackMonday
We're going to need a lot more panda cub pix on Twitter to offset this China despair (some calling it #GreatFallOfChina)
What TD Ameritrade is trying to tell everyone trying to access their accounts right now. #BlackMonday http://t.co/xRbtPolKBW
Shockwaves from #BlackMonday pushing Australia 1000s of miles northwards. Expected to hit Alaska by close of markets. http://t.co/bF3XdnR8nR
When a system is completely built on gambling, a day of giant loses is to be expected. #BlackMonday
Right before #NYSE opening bell. #BlackMonday http://t.co/uF8Sf0YKdo
Even Neopets is getting hit hard by #BlackMonday http://t.co/lxwTwHAgVD
Fair to say that ex-Gordon Brown advisor @DPMcBride is somewhere between "nervous" and "concerned" #BlackMonday http://t.co/iEzV9UZNfA
To everyone losing money this #BlackMonday just remember....theres always money in the banana stand ;)
The irony is that many of these stocks probably need to go much lower before they can be considered a ‘bargain.’ #BlackMonday
You know it's going to be a bad day for stocks when #BlackMonday is the top trend in the U.S. and the markets don't open for 2 more hours.
Candid snap shot of Wall Street. #BlackMonday http://t.co/Ul5y8ziGKj
Who put Lord Grantham in charge of the stock markets? #BlackMonday
I love when the stock market crashes and every news article shows a picture of a rich white man in distress #BlackMonday
World markets suffering from severe depression symptoms.No positives,no future,Neg cycle.Will the markets commit suicide #greatfallofchina
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The move by China's central bank came after Chinese stocks slumped 8 percent on Tuesday. They fell 8.5 percent on Monday amid growing concerns about slowing economic growth.

At 9:36 a.m. ET (1336 GMT) the Dow Jones industrial average .DJI was up 374.74 points, or 2.36 percent, at 16,246.09, with all 30 of its components in the black.

The S&P 500 .SPX was up 42.71 points, or 2.26 percent, at 1,935.92 and the Nasdaq composite .IXIC was up 131.70 points, or 2.91 percent, at 4,657.95.

All 10 major S&P sectors were higher with the technology index's .SPLRCT 2.87 percent rise leading the advancers.

Apple's (AAPL.O) shares jumped 5.1 percent to $108.43, giving the biggest boost to the Nasdaq. The stock slumped as much as 13 percent on Monday, before ending down 2.5 percent.

SEE ALSO: Blue-chip stocks impacted by Monday's stock market correction

All big U.S. banks were higher, with Bank of America (BAC.N) up 4.8 percent at $16.03.

The dollar .DXY, which fell to a 7-month low against a basket of currencies on Monday, was up about 1 percent.

Oil prices were up about 3 percent, bouncing back from heavy losses on Tuesday, but U.S. crude still remained below $40 per barrel.

Data released on Tuesday showed U.S. single-family home prices rose slightly faster in June from a year ago, suggesting resilience in the housing sector.

Understanding Monday's market turmoil ... in 60 seconds

Monday's Market Turmoil...in 60 Seconds

Investors will also be keeping an eye on the Conference Board's U.S. consumer confidence index, due at 10 a.m. ET, which is expected to have risen to 93.4 in August from 90.9 last month.

Disney (DIS.N) was up 3.8 percent at $98.99.

Best Buy (BBY.N) jumped 16.1 percent to $33.97 after the owner of the biggest U.S. electronics chain reported an unexpected increase in quarterly sales.

(Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza and Saumyadeb Chakrabarty)

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Markets

S&P 500 2,191.95 0.87 0.04%
DJIA 19,170.42 -21.51 -0.11%
NASDAQ 5,255.65 4.55 0.09%
DAX 10,513.35 -20.70 -0.20%
HANG SENG 22,564.82 -313.41 -1.37%
NIKKEI 225 18,426.08 -87.04 -0.47%
USD (per EUR) 1.07 0.00 0.06%
USD (per CHF) 1.01 0.00 -0.01%
JPY (per USD) 113.48 -0.41 -0.36%
GBP (per USD) 1.27 0.01 1.16%

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