July 20 (UPI) — U.S. markets rebounded on Tuesday as investors shrugged off COVID-19 fears as they sought to buy in on stocks that dipped in Monday’s decline.
The Dow Jones Industrial Average gained 549.95 points, or 1.62%, while the S&P 500 increased 1.56% and the Nasdaq Composite closed up 1.57% as they largely erased losses from Monday’s trading which saw the Dow post its worst day since October and the S&P 500 and Nasdaq notch their worst session’s in two months.
Many of the stocks that struggled on Monday closed with gains Tuesday including travel stocks as some investors noted that COVID-19 vaccines have been effective at preventing hospitalizations and deaths despite rising case numbers.
“There are some silver linings,” Clear Bridge Investment Strategy analyst Josh Jamner told Yahoo Finance. “So far, hospitalizations remain low. It seems like the vaccines are very effective against this. That leads us to be optimistic.”
American Airlines stock gained 8.38% after falling 4.14% on Monday, while Delta gained 5.45% after dropping 3.77% in the previous session. Royal Caribbean climbed 7.76% following a decline of 3.98%.
Exxon Mobil stock also gained 1.1% after falling 3.44% on Tuesday amid a drop in oil prices.
Financial stocks also increased as the 10-year treasury yield climbed back above 1.2% with Bank of America gaining 2.03%, while JPMorgan Chase rose 1.86%.
Following Tuesday’s rebound, the S&P 500 was left 2% below its record high from last week.