Wall Street jumps more than 2 percent after earnings, data

NEW YORK, Oct 16 (Reuters) - U.S. stocks surged more than 2 percent on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off.

Wall Street's three major indexes tallied their biggest one-day percentage gains since March. The small-cap Russell 2000 recorded its biggest single-session gain in nearly two years.

Technology, which sold off heavily in the recent pullback, led the gains as all 11 major sectors were positive.

Investors are expecting another strong quarter of corporate profits, hoping the reports can calm nerves following concerns over global trade tensions and rising bond yields. Third-quarter earnings for S&P 500 companies are expected to have climbed 21.8 percent, according to I/B/E/S data from Refinitiv.

RELATED: Scenes from Wall Street as markets plummet - Oct. 10-11

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Scenes from Wall Street as markets plummet - Oct. 10-11
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Scenes from Wall Street as markets plummet - Oct. 10-11
Traders work on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
Traders work on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
A trader works on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
A trader works on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
A trader works on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
A trader works on the floor of the New York Stock Exchange (NYSE) in Manhattan in New York, U.S., October 10, 2018. REUTERS/Brendan McDermid
Trader Thomas Ferrigno works on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. U.S. stocks are mostly lower in unsteady trading one day after their biggest drop since February. (AP Photo/Richard Drew)
Trader Jonathan Corpina, left, and specialist Michael Pistillo work on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
Specialist Anthony Rinaldi works on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
Trader Michael Capolino works on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
Trader Peter Mazza, left, works with trader Daniel Trimble on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
FILE- This Wednesday, Oct. 10, 2018, file photo shows a screen above the floor of the New York Stock Exchange shows the closing number of the Dow Jones industrial average. The last time the stock market was falling this much, this fast, earnings season came to the rescue. Earlier this year, a parade of companies lined up to report profits that were even fatter than Wall Street had forecast, which helped turn momentum and get stocks back on the upswing. (AP Photo/Richard Drew)
Trader Peter Tuchman works on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
Specialists Jay Woods, right, and Thomas McArdle work on the floor of the New York Stock Exchange, Thursday, Oct. 11, 2018. The market's recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. (AP Photo/Richard Drew)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Oct. 11, 2018. U.S. stocks fell for a sixth day, extending the longest losing streak of Donald Trump's presidency, as energy shares plunged and a rally in tech failed to lift the broader market. Photographer: Michael Nagle/Bloomberg via Getty Images
A monitor displays Prudential Financial Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Oct. 11, 2018. U.S. stocks fell for a sixth day, extending the longest losing streak of Donald Trump's presidency, as energy shares plunged and a rally in tech failed to lift the broader market. Photographer: Michael Nagle/Bloomberg via Getty Images
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Oct. 11, 2018. U.S. stocks fell for a sixth day, extending the longest losing streak of Donald Trump's presidency, as energy shares plunged and a rally in tech failed to lift the broader market. Photographer: Michael Nagle/Bloomberg via Getty Images
A monitor displays stock market information on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Oct. 11, 2018. U.S. stocks fell for a sixth day, extending the longest losing streak of Donald Trump's presidency, as energy shares plunged and a rally in tech failed to lift the broader market. Photographer: Michael Nagle/Bloomberg via Getty Images
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Oct. 11, 2018. U.S. stocks fell for a sixth day, extending the longest losing streak of Donald Trump's presidency, as energy shares plunged and a rally in tech failed to lift the broader market. Photographer: Michael Nagle/Bloomberg via Getty Images
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“The corporate profits have certainly been the biggest prop for this market, and so a lot of weight is going to be given to how those corporate profits come out," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "We are early in the season, but so far so good, especially today."

The gains marked a partial recovery from Wall Street's recent steep pullback from record levels. The S&P 500 last week posted its biggest weekly drop since March, and some market-watchers said it was not clear that the recent volatility was over.

"It’s mostly an oversold bounce," Willie Delwiche, investment strategist at Baird in Milwaukee, said of Tuesday's gains.

"The degree of the move is a function of the moves we have seen already this month more than anything else."

The Dow Jones Industrial Average rose 547.87 points, or 2.17 percent, to 25,798.42, the S&P 500 gained 59.13 points, or 2.15 percent, to 2,809.92 and the Nasdaq Composite added 214.75 points, or 2.89 percent, to 7,645.49.

The technology sector gained 3.0 percent while healthcare rose 2.9 percent. Those two groups have led the S&P 500's advance this year.

Goldman Sachs and Morgan Stanley reported better-than-expected quarterly profits, helped by strength in stock trading and equity underwriting, wrapping up a strong quarter for the big U.S. banks. Goldman shares rose 3.0 percent, while Morgan Stanley shares gained 5.7 percent.

In healthcare, shares of diversified product company Johnson & Johnson rose 1.9 percent, while insurer UnitedHealth Group gained 4.7 percent following their respective quarterly reports.

Adobe shares jumped 9.5 percent following the software company's analyst meeting, adding to the day's upbeat sentiment for tech.

Walmart shares rose 2.1 percent as its chief executive urged investors to revise their view of the company's business.

After the market closed, shares of Netflix, one of the closely watched group of FANG momentum stocks, jumped following the streaming video company's report.

On the downside, BlackRock shares dropped 4.4 percent after the world's biggest asset manager reported its lowest sales of equity, bond and other long-term investments since the second quarter of 2016.

Shares of industrial distributor W W Grainger tumbled 11.9 percent after its report.

In economic data, U.S. industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, while other data showed job openings hit a record high in August.

About 7.5 billion shares changed hands in U.S. exchanges. That was below the 7.9 billion daily average over the last 20 sessions, and well lower than busier trading days last week when the market was sliding.

Advancing issues outnumbered declining ones on the NYSE by a 5.17-to-1 ratio; on Nasdaq, a 4.02-to-1 ratio favored advancers.

The S&P 500 posted five new 52-week highs and seven new lows; the Nasdaq Composite recorded 17 new highs and 76 new lows.

(Additional reporting by Medha Singh in Bengaluru; Editing by Nick Zieminski and James Dalgleish)

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