Dow Reclaims 10,000, Powered by Financial Stocks
The Dow Jones Industrial Average ($INDU) rose for the second straight session after snapping a seven-day losing streak Tuesday, rising 274 points, or nearly 3%, to close at 10,018. Dow components Bank of America (BAC), American Express (AXP) and JPMorgan Chase (JPM) all rallied about 5%.
The broader S&P 500 ($INX) added 32 points, or 3.1%, to 1,060, led by a 4.3% jump in financial stocks. The more volatile, tech-heavy Nasdaq Composite ($COMPX) rose 66 points, or 3.1%, to finish at 2,159.
As welcome as the rally may be, relative volume was once again well below average. Jeffrey Kleintop, chief market strategist at LPL Financial, told clients the current market lull ahead of second-quarter earnings season next week provides investors an opportunity to reflect on the recent economic data and market decline from the perspective of the fundamentals, valuations and technicals.
"The fundamentals support the view that the recent spate of softer economic data is the typical soft spot that occurs one year after the start of a recovery," Kleintop wrote. "Technical oversold conditions are now prompting us to recommend buying stocks."