Traders work on the New York Stock Exchange trading floor during early trading on August 6, 2024 in New York City.
Michael M. Santiago | Michael M. SantiagoGetty Images
Stocks rose on Tuesday, recouping some of the previous session’s losses.
this S&P 500 Index Trading volume rose 1.6%. this Dow Jones Industrial Average Up 509 points, or 1.3%, technology stocks rose Nasdaq Index up 1.6%.
Several big tech stocks rebounded after sharp pullbacks on Monday. Nvidia rose 3.6%, while meta platform up 2.5%. at the same time, apple It continued to decline, with a drop of nearly 2%.
A rebound in Japanese stocks boosted sentiment. this Nikkei 225 Index It was its best one-day gain since October 2008, surging 10.2%. The surge came a day after the benchmark index suffered its worst day since 1987, when it fell 12.4%.
This follows a sharp sell-off during trading on Monday due to concerns over the state of the economy. The 30-stock Dow Jones Index fell 1,033.99 points, or 2.6%, and the S&P 500 Index fell 3%. Both indexes had their worst trading days since September 2022.
a major relaxation Japanese yen “carry trade” It also increased volatility. The Bank of Japan raised interest rates last week, boosting the yen’s appreciation. This affects the practice of traders borrowing cheaper currencies to buy other global assets.
Baird investment strategist Ross Mayfield said volatility is likely to continue to rise in the short term as carry trades continue to unwind.
“I wouldn’t be surprised if there’s more pressure in the coming weeks, but I do think the panic about growth is overdone,” Mayfield said.
Mayfield added that despite the cooling, the labor market remains relatively healthy and other economic indicators remain strong. “While I think market volatility is likely to continue, I’m not too worried about the fundamentals.”
