Dow jumps over 800 points as Wall Street posts big back-to-back gains
U.S. stocks surged on Tuesday, extending a strong fourth quarter start, after a bruising three-quarter run.
The Dow Jones Industrial Average spiked 825.43 points, or 2.80 percent, to 30,316.32, after jumping 765 points, or nearly 2.7 percent, in the prior session.
The S&P 500 was up 112.50 points, or 3.06 percent, to 3,790.93, following Monday's 2.6 percent rise.
The Nasdaq Composite Index increased 360.98 points, or 3.34 percent, to 11,176.41, after climbing 2.3 percent in the previous session.
Both the Dow and S&P 500 had their largest two-day gains since 2020.
All the 11 primary S&P 500 sectors ended in green on Tuesday, with energy and financials up 4.34 percent and 3.59 percent, respectively, leading the advance.
Helping fuel the rally was a retreat in U.S. Treasury yields. The yield on the benchmark U.S. 10-year Treasury fell to around 3.62 percent on Tuesday afternoon, after briefly topping 4 percent last week for the first time in more than a decade. The 30-year Treasury yield also declined.
The equity markets have usually moved negatively with bond yields, as higher bond yields would make equity investments less attractive.
Market sentiment was also lifted after data showed U.S. job openings fell sharply in August to the lowest level in over a year. The data suggested that the red-hot labor market might be cooling off a bit, raising hopes that the Federal Reserve won't be so aggressive about rate hiking.
Despite the strong two-day increases, U.S. equities suffered massive losses for the year-to-date returns, as investors worried about high inflation, the pace of Fed's policy tightening and the potential impact on the economy.
"With sentiment toward equities already very weak, periodic rebounds are to be expected," UBS analysts said Tuesday in a note, adding "markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates."