Oct. 4 (UPI) — Stocks surged for a second day Tuesday, pushing the Dow Jones Industrial Average back over 30,000 and giving the S&P 500 its biggest two-day rally since March 2020.
The Dow Jones Industrial average soared 825.43 points, or 2.8%, to close at 30,316.32. The S&P 500 rose 112.5 points, or 3.06%, to 3,790.93, and the Nasdaq Composite climbed 360.97 points, or 3.34% to 11,176.40.
“With sentiment toward equities already very weak, periodic rebounds are to be expected. Mark Haefele, chief investment officer at UBS Global Wealth Management, said, according to CNBC.
“But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates,” Haefele said.
The 10-year Treasury yield slipped to 3.616%, and the two-year Treasury yield dropped to 4.097%.
The U.S. dollar index, which measures the currency against six major rivals, fell 1.3% Tuesday, erasing recent gains.
Tuesday’s rally came amid signs of a weakening job market. The Bureau of Labor Statistics reported that available job openings dropped from 11.17 million in July to 10.05 million in August, the biggest decline since April 2020.
Amazon announced it would freeze hiring for all corporate roles in its retail business until at least next year.
After Monday’s report of weaker-than-expected manufacturing, investors are encouraged that the economic measures may ease the Federal Reserve’s monetary policy tightening.
“This is great, but in the back of my mind I am thinking, this can’t possibly last,” said Neil Dutta, head of U.S. economic research at Renaissance Macro Research, according to MarketWatch.
Nicholas Colas, founder of DataTrek Research, said valuations still are too high to consider Tuesday’s rally as a sign of a healthy market.
“Happy as we are that U.S. equities had a nice bounce today, this move is best considered as just another day in a rough year,” he told MarketWatch.
Ford and General Motors were among Tuesday’s top performers, closing up 7.76% and 8.91%, respectively, after strong earnings reports.
Share of Twitter closed up more than 22% after a report that billionaire Elon Musk submitted a new bid to purchase the company.
