The rebounds on the Wall Street chiefly due to bargain hunting on heavily battered stocks amid hopes recent selloff was overdone. Chipmaker Micron Technology also supported a rebound after reporting better than expected quarterly results and providing upbeat guidance. Report from Moderna about the effectiveness of a booster dose of its Covid-19 vaccine against the Omicron variant also helped lift sentiment.
A rapidly spreading Omicron variant of the coronavirus has rattled stock markets around the world, triggering major routs in the final month of the year due to worries about the strain's impact on global economic recovery. Tuesday's gains marked a reversal for the market after its recent pullback.
At the close of trade, the Dow Jones Industrial Average index advanced 560.54 points, or 1.6%, to 35,492.70. The S&P500 index added 81.21 points, or 1.78%, to 4,649.23. The tech-heavy Nasdaq Composite Index grew 360.14 points, or 2.4%, to 15,341.09.
Total shares volume turnover on U.S. exchanges stood at 9.06 billion shares, down from yesterday's 9.78 billion shares. Advancing stocks outnumbered declining ones on the NYSE exchange by 2750 to 626 and 98 closed unchanged. In the NASDAQ, 3460 issues advanced, 1148 issues declined, and 257 issues unchanged.
Total 9 of 11 major S&P 500 sector indexes advanced, with top performing issues were energy (up 2.9%), information technology (up 2.6%), consumer discretionary (up 2.5%), and financials (up 2%).
Shares of energy sector gained the most among S&P sectors, benefited from a significant rebound by the price of crude oil. Crude for February delivery spiked $2.51 to $71.12 a barrel. Chevron rose 1.6%.
Shares of technology companies were second most gainers on the market, with Micron Technology rising more than 10% after the memory-chip maker posted much better than expected earnings for the prior quarter and gave bullish guidance. NXP Semiconductors gained 3%, and Advanced Micro Devices added 6.2%.
Shares of retailers were also up, with Nike gaining 6.1% after the sneaker maker posted better than expected quarterly earnings and sales, despite ongoing supply chain pressures. Meanwhile, other retailers like Gap, Dick's Sporting Goods, and Macy also gained.
Bank stocks got help from rising bond yields. The yield on the 10-year Treasury rose to 1.47% from 1.42% late Monday. Citigroup gained 1.9%.
Among Indian ADR, HDFC Bank advanced 1.9% to $63.14, WNS Holdings added 1.1% to $84.45, INFOSYS added 2.2% to $24.22, ICICI Bank added 2.6% to $18.92, Tata Motors rose 3.1% to $30.38, and Azure Power Global added 6% to $19.14. Dr Reddys Labs added 1.5% to $61.59. Wipro rose 3.2% to $9.30.
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