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NEW YORK – US stocks climbed more than 2% on Tuesday, after the optimistic results of major companies like UnitedHealth and Goldman Sachs and solid economic data, as stocks rebounded after a sell-off.
The three main Wall Street indexes recorded their biggest percentage gain in a day since March. Russell 2000, a small-cap company, recorded its largest gain in a single session in almost two years.
Technology, which sold strongly in the recent downturn, led the gains, with the top 11 sectors all positive.
Investors are expecting a new quarter with strong corporate profitability, hoping the reports will calm the nerves as a result of concerns over global trade tensions and rising bond yields. According to Refinitiv's I / B / E / S data, S & P 500 earnings are expected to have risen 21.8% in the third quarter.
"Corporate profits have certainly been the most important asset of this market, which will give a lot of importance to how these profits will be distributed," said Chuck Carlson, Horizon President and CEO. Investment Services in Hammond, Indiana. "We are early in the season, but until now everything is fine, especially today."
The gains marked a partial recovery of the recent sharp decline in Wall Street from record levels. Last week's S & P 500 recorded its biggest weekly decline since March, and some market watchers said it was not clear that recent volatility was over.
"It's mainly an oversold rebound," said Willie Delwiche, investment strategist at Baird in Milwaukee, about Tuesday's gains.
"The degree of displacement is a function of the movements already observed this month more than anything else."
The Dow Jones Industrial Average rose 547.87 points, or 2.17%, to 25,798.42, the S & P 500, from 59.13 points, or 2.15%, to 2,809 , 92 and the Nasdaq Composite, of 214.75 points, or 2.89%, to 7,645.49.
The technology sector grew 3.0%, while the health care sector advanced 2.9%. Both groups led the growth of the S & P 500 this year.
Goldman Sachs and Morgan Stanley reported quarterly earnings above expectations, helped by strong stock and equity trading, closing a strong quarter for large US banks. Goldman shares rose 3.0%, while Morgan Stanley shares rose 5.7%.
In the Healthcare sector, shares of diversified Johnson & Johnson rose 1.9%, while the UnitedHealth Group's insurance group advanced 4.7% following their respective quarterly reports.
Adobe shares jumped 9.5% as a result of the analyst meeting of the software company, bolstering the optimistic sentiment of the day for technology.
Walmart's shares rose 2.1%, as its director urged investors to rethink their vision of the company's operations.
After the market closed, the shares of Netflix, one of the tightly monitored FANG Momentum company groups, surged as a result of the company's video streaming report.
On the downside, BlackRock shares fell 4.4% after the world's largest asset manager posted its weakest sales of equity, bonds and other long-term investments since second quarter of 2016.
Shares of industrial distributor WW Grainger fell 11.9% after the release of its report.
In economic data, US industrial production rose for a fourth consecutive month in September, driven by gains in manufacturing and mining output, while other data showed that job openings hit a record high in August.
About 7.5 billion shares have changed hands in US trade. That was below the daily average of $ 7.9 billion over the last 20 sessions, and well below the busier trading days last week, as the market was down.
Increasing issues outnumbered declining issues at the NYSE by a ratio of 5.17 to 1; on Nasdaq, a ratio of 4.02 to 1 favored advances.
The S & P 500 recorded five new highs in 52 weeks and seven new lows; the Nasdaq Composite recorded 17 new highs and 76 new lows.
(Additional report by Medha Singh in Bengaluru, edited by Nick Zieminski and James Dalgleish)
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