The Dow Jones industrial average and S&P 500 closed higher, recovering part of their Friday selloff. The Standard & Poor’s 500 climbed 15 points, or 0.8 percent, to 1,973 and the Nasdaq composite gained 42 points, or 0.9 percent, to 4,868.
Homebuilder Lennar rose 1.6 percent after reporting that third-quarter net income jumped 25.6 percent to 223.3 million. Japanese markets are shut through Wednesday.
The S&P 500 and Nasdaq composite traded less than 8 percent below their 52-week highs. Despite the decline, the reading was still comfortably above the 50 points mark signifying expansion in the economy.
But it likely remained near 6/1-2-year lows, pointing to a seventh straight contraction in activity on a monthly basis.
“I just think we’re in this period where investors are anxious about a slowdown”, said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
Global stock markets were uneven Monday after the Fed’s decision to delay a rate hike added to pessimism about global growth prospects.
Frankfurt’s benchmark DAX 30 index sank 3.80 per cent to 9,570.66 points, with carmaker Volkswagen collapsing by almost a fifth after revealing as many as 11 million diesel cars had been equipped with devices that could skew emissions data. Apple, Google and Facebook. declined at least 1.5 percent. Europe’s major markets were headed toward ending the day in the green, led by France’s CAC 40, which was up 1.21 percent in afternoon trading. Bund futures opened up 17 ticks on Monday.
THE QUOTE: “Does holding the line mean the Fed knows something we don’t?” said Evan Lucas of IG Markets in a report.
“The reason for the uncertainty is the Fed”.
Global stocks turned sharply lower Tuesday, as the recent series of sharp swings in markets continued.
Bond prices rose. The yield on the 10-year US Treasury dipped to 2.16 per cent from 2.20 per cent Monday, while the 30-year dropped to 2.97 per cent from 3.02 per cent. Bond prices and yields move inversely. The euro strengthened to $1.1198 from $1.1187.