© Reuters. FILE PHOTO: A person walks past the New York Stock Exchange (NYSE) in New York City, New York, United States on July 19, 2021. REUTERS / Andrew Kelly
By Stephen Culp
NEW YORK (Reuters) – Wall Street rebounded Tuesday and posted a multi-day losing streak as a string of positive gains and revived economic optimism fueled a risk-taking rally.
All three major US stock indices gained more than 1%, with the blue-chip Dow leading the way after its worst day in nine months.
The meeting put the S&P on track for its first rise in four days and the first rise in the Nasdaq in six days.
Economically sensitive small caps and transports outperformed the broader market.
"The markets were sold for a number of reasons, primarily related to the surge in the Delta variant and concerns about the economy," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
"But now the market is buzzing again," added Ghriskey. "It shows the overall strength of the market. Even when the news is bad, this market shows amazing strength."
US Treasury benchmark yields rebounded from their five-month lows after their largest drop in a single session since February in the previous session. This helped boost interest-sensitive banks by 2.9%.
Growing concerns about the highly contagious Delta variant of COVID-19, which is now responsible for the majority of new infections, has led to sell-offs in recent sessions as global vaccination efforts gain momentum.
For an interactive graphic on the worldwide provision and availability of vaccines, click here https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access.
It rose by 592.77 points or 1.75% to 34,554.81, rose by 69.64 points or 1.64% to 4,328.13 and rose by 233.56 points or 1.64% to 14,508.54 points .
All 11 major sectors of the S&P 500 were positive, with financials seeing the largest percentage gains.
The reporting season for the second quarter is in full swing, with 56 of the companies in the S&P 500 having published results. According to Refinitiv, 91% of these have defeated the consensus.
"Profit expectations have steadily risen," said Ghriskey. "Still, companies continue to exceed expectations, so excitement about the post-COVID economic recovery is huge and that helps the ratings too."
Analysts now see annual S&P earnings growth of 72.9% for the April to June period, a significant improvement from the 54% growth at the beginning of the quarter.
Halliburton (NYSE 🙂 Co was up 3.4% after a rebound in crude oil prices boosted demand for oilfield services, causing the company to post its second straight quarterly profit.
Peloton Interactive (NASDAQ 🙂 Inc. rose 4.9% after it announced it would be giving fully insured members of the UnitedHealth Group (NYSE 🙂 free access to its live and on-demand fitness classes.
Netflix Inc (NASDAQ :), United Airlines Holdings (NASDAQ 🙂 and Chipotle Mexican Grill Inc (NYSE 🙂 are among the companies to report profits after Tuesday's closing bell.
Increasing issues outweighed declining issues on the NYSE by a ratio of 4.49 to 1; on the Nasdaq favored a ratio of 3.38 to 1 advanced.
The S&P 500 posted 37 new 52-week highs and no new lows; the Nasdaq Composite posted 39 new highs and 70 new lows.