Please try another search
Investing.com -- U.S. stocks rallied sharply on Tuesday completing their strongest one-day move in four months, as investors capitalized on a host of bargain opportunities made possible from the Brexit-inspired global market crash.
The Dow Jones Industrial Average rose 269.48 or 1.57% to 17,409.72 in Tuesday's session, bouncing from three and a half month lows from the previous day. Previously, the Dow tumbled more than 850 points over the prior two sessions, as Financial, Energy and Transport stocks came under pressure from the surprising decision by U.K. voters to depart from the European Union. The S&P 500 Composite index added 35.55 or 1.78% to 2,036.09, as all 10 sectors closed in the green. Stocks in the Energy, Financials and Health Care industries led, each gaining more than 2% on the session.
The NASDAQ Composite index, meanwhile, gained 97.43 or 2.12% to 4,691.87, amid considerable gains among pharmaceutical and the so-called FANG tech stocks. Shares in Facebook Inc (NASDAQ:FB) and Netflix Inc (NASDAQ:NFLX) each surged by more than 3%, while Amazon.com Inc (NASDAQ:AMZN) shares rose by 2.4% to 16.59. Although the NASDAQ posted one of its strongest days in 2016, the index still remains in correction territory at 10% below its 52-week high.
On Monday, all three of the major indices moved below their 200-day moving average. In the wake of last Friday's historic U.K. referendum, global equities had shaved off more than $3 trillion in value as investors have weighed the uncertainty of contagion effects throughout the euro area and the impacts of the split on credit and currency markets.
Notably, the CBOE Vix Volatility Index fell more than five points to 18.75 on Tuesday, dropping to levels last week before the Brexit vote. On Friday, as global markets responded to the unexpected adverse shocks from the decision, the Vix soared to four-month highs above 26.20.
The top performer on the Dow was JPMorgan Chase & Co (NYSE:JPM), which added 1.89 or 3.28% to 59.50, leading financial stocks higher. JP Morgan finished just above The Travelers Companies Inc (NYSE:TRV), which gained 3.58 or 3.14% to 113.93. It came amid reports that the Connecticut-based insurance giant is expanding wedding insurance coverage to activities held on the following day of the ceremony. The new coverage, according to Travelers, will be available in 18 states.
The worst performer was EI du Pont de Nemours and Company (NYSE:DD), which fell 1.69 or 2.64% to 62.39. Since the Brexit vote, a plethora of top chemical stocks, including DuPont (NYSE:DD), have fallen considerably due to their exposure to the euro area. DuPont shares also moved lower on Tuesday following reports that Dow Chemical Company (NYSE:DOW) will close a number of manufacturing facilities in the U.S. and abroad over the next two years. Dow Chemical also expects to lay-off 2,500 additional workers before the completion of a $4.8 billion merger with DuPont.
The biggest gainer on the NASDAQ was Endo International PLC (NASDAQ:ENDP), which surged 2.55 or 18.63% to 16.24 after the U.S. Patent and Trademark Office approved the company's patent on Vasostrict for patients suffering from vasodilatory shock. Shares in Endo International have plunged more than 80% over the last year, as a result of the rout among specialty pharmaceutical companies since an accounting scandal involving Valeant Pharmaceuticals (NYSE:VRX) came to light. The worst performer was Illumina Inc (NASDAQ:ILMN), which ticked down 0.79 or 0.58% to 134.69. In total, only three components of the NASDAQ 100 closed lower.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,607-458 margin.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.