Traders work on the New York Stock Exchange trading floor during morning trading on Aug. 6, 2024 in New York City.
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Stocks rose on Tuesday, recouping some of the previous session’s losses.
this S&P 500 Index Trading volume rose 1.3%. this Dow Jones Industrial Average Up 286 points, or 0.7%, technology stocks rose Nasdaq Index up 1.2%.
All 11 broad market indexes showed positive trends on the day. Several large technology stocks also rebounded after sharp pullbacks on Monday. Nvidia rose 3.6%, while meta platform up 2.5%. at the same time, apple It continued to decline, with a drop of nearly 2%.
A rebound in Japanese stocks boosted sentiment. this Nikkei 225 Index It was its best one-day gain since October 2008, surging 10.2%. The surge came a day after the benchmark suffered its worst day since 1987, when it fell 12.4%.
This follows a sharp sell-off during Monday trading amid concerns about economic conditions. The 30-stock Dow Jones Index fell 1,033.99 points, or 2.6%, and the S&P 500 Index fell 3%. Both indexes had their worst trading days since September 2022.
Sharp unwinding of yen “carry trades” also added to volatility. The Bank of Japan raised interest rates last week, boosting the yen’s appreciation. This affects the practice of traders borrowing cheaper currencies to buy other global assets.
Baird investment strategist Ross Mayfield said volatility is likely to continue to rise in the short term as carry trades continue to unwind.
“I wouldn’t be surprised if there’s more pressure in the coming weeks, but I do think the panic about growth is overdone,” Mayfield said.
Mayfield added that despite the cooling, the labor market remains relatively healthy and other economic indicators remain strong. “While I think market volatility is likely to continue, I’m not too worried about the fundamentals.”
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