Stocks rose to start the day on Tuesday as Wall Street aimed to build on a strong rally seen in the previous session.
The Dow Jones Industrial Average rose 621[ads1] points, or 2%. The S&P 500 rose 2.4%, putting the index on track for its best two-day rally since March 2020. The Nasdaq Composite was up 2.7%.
Monday brought a respite from the slides seen through September and last quarter. The Dow jumped around 765 points to end its best day since June 24. The S&P 500 rose about 2.6% in its best day since July 27, and the Nasdaq gained 2.3%.
Meanwhile, the yield on the 10-year U.S. Treasury bond extended its decline, trading at around 3.615%, down from more than 4% at one point last week. Earlier in the day it briefly broke below 3.6%.
Sentiment was also boosted as shares in Credit Suisse traded 4% higher. Earlier this week there were concerns about the bank’s financial health. The bank told CNBC it would provide updates to the strategy along with its third-quarter numbers.
“After falling more than 9% in September and extending its year-to-date decline to nearly 25% at Friday’s close, we believe the S&P 500 appeared oversold,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “Additionally, some of last week’s selling pressure may have been driven by quarter-end rebalancing, which has now concluded.”
“With sentiment against stocks already very weak, periodic upswings are to be expected,” he added. “However, markets are likely to remain volatile in the near term, primarily driven by expectations around inflation and policy rates.”
Investors will watch for new data on Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.