United States stocks trade higher after heavy sell-off


Market experts also attributed the selloff, including the overnight slide in S&P 500 futures, to the violent unwind of a trade betting on volatility in USA stocks staying low as the CBOE Volatility index, known as the VIX, notched its biggest one-day jump on Monday in over two years.

The Dow Jones Industrial Average climbed 410.37 (+1.70 percent) to finish the session at 24,601.27.

The S&P's biggest boosts from single stocks came from Apple Inc, which rose 4 percent, and Amazon.com, which ended up 3.5 percent. The S&P 500 rose 36.45 points, or 1.39%, to 2,656.

Reuters has stated that the "trigger" could also be the data released by the government which showed wages rising at the fastest rate since 2009, with an annual increase of 2.9 per cent, sparking worries about inflation and higher interest rates and leading to a sharp rise in U.S. bond yields.

The NASDAQ also lost ground, slipping 3.71 points or 0.05% at 6,972.92.

Technology companies and banks, some of the biggest winners over the past year, rose up the most. "Nevertheless, the worst is likely not over for this week for the simple reason that we have U.S. CPI sitting as a mammoth event risk this week", said Pan, referring to the Wednesday release of U.S. consumer price index data for January.

Nine of the 11 major S&P indexes rose, led by real estate.SPLRCR, up 0.54 percent.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

On Wall Street, many companies that rose the most over the a year ago have borne the brunt of the selling.

Clothing brand Guess's stock (-5.25 percent) continues to plummet after supermodel Kate Upton accused co-founder Paul Marciano of sexual misconduct.

Stock markets in Europe and Asia were subdued Tuesday as the afterglow from Wall Street's overnight rally faded.

WEEK AHEAD: Investors will watch US inflation and retail sales figures on Wednesday particularly closely.

President Donald Trump unveiled the country's latest budget Monday, with the White House calling for $3 trillion in deficit reduction, which would include $1.7 trillion in mandatory spending cuts, while proposing to cut discretionary spending by 2 percent a year after 2019.

The Dow industrials were up 279 points, or 1.2 percent, to 24,471. General Dynamics dipped $1.82 to $210.28. Brent crude, used to price global oils, advanced 45 cents to $63.24 a barrel in London.

By 9:54 a.m. NY time, the FTSE 100, which captures Britain's largest companies, had fallen 1.7 percent, Germany's DAX had tumbled 2.2 percent and France's CAC 40 had dropped 2.1 percent. On Monday Comcast stock slipped 15 cents to $38.42 while Disney lost 7 cents to $103.02. The yield on the 10-year Treasury note fell to 2.85 per cent from 2.86 per cent. The euro rose to $1.23 from $1.2231. The Nasdaq climbed 148, or 2.1 percent, to 7,115.