US stocks rebound after three days of losses

Wall Street stocks rebounded on Tuesday after three straight days of losses, with analysts pointing to bargain hunting and US bond markets bouncing.

The gains in New York also followed a quieter day in most overseas stock markets and came as Caterpillar and Uber reported solid earnings, lifting shares of both companies.

“I’m hopeful that we’ll get some stability back,” said Jack Ablin of Cresset Capital, adding that there could still be “a little more downside risks to the market.”

The Dow Jones Industrial Average finished up 0.8 per cent at 38,997.66.

The broad-based S&P 500 gained 1.0 per cent to 5,240.03, while the tech-rich Nasdaq Composite Index also advanced 1.0 per cent to 16,366.85.

Major indices fell more than 2.5 per cent on Monday in a move seen as a reflection of worries about a US recession following Friday’s disappointing jobs data.

Market watchers have also pointed to ripple effects from Japan’s decision last week to hike interest rates, which boosted the yen and have led to liquidations in other markets.

The Nikkei, which slumped 12.4 per cent on Monday, jumped 10.2 per cent on Tuesday.

The reversal in the US equity market came as US Treasury bond yields climbed and as a closely-watched volatility index retreated.

Among individual companies, Caterpillar gained 3.0 per cent after reporting better-than-expected profits as strong pricing offset the hit from lower revenues.

Uber surged 10.9 per cent as it reported higher profits on a 16-per cent rise in revenues to $10.7 billion. Company officials pointed to strong demand from frequent users.

AFP

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