Wall Street rebounds as stocks rise overseas
EmptyNEW YORK -- Wall Street rebounded Tuesday as investors were encouraged by a recovery on world markets and moved to recoup some of the big losses suffered in last week's sharp pullback. The Dow Jones industrials rose 156 points.
Investors came off the sidelines to buy stocks that have languished in five turbulent sessions. The Dow made back about 26% of the ground it lost over the past week, and scored its highest one-day point gain since July 24.
Despite the rebound, questions remained about whether the correction that has swept around the globe has truly run its course. U.S. investors were still contending with fundamental economic issues, including a weaker than expected reading on fourth-quarter productivity and the dollar's continuing weakness against the yen.
The advance Tuesday treated Wall Street traders to what had become a rare sight -- the color green splashed across their computer screens that show stock prices, instead of last week's red. But, after being knocked about by erratic market shifts in recent sessions, there was still a sense this might not be the recovery everyone is waiting for.
"I don't think we should get too used to seeing all this green," said Jay Suskind, head trader at Ryan Beck & Co. "This market feels to me like it doesn't have legs, there just doesn't seem to be that euphoria out there. There is still trepidation."
According to preliminary calculations, the Dow rose 157.18, or 1.30%, to 12,207.59, after dropping 581 points over the past week. The Standard & Poor's 500 index was up 21.29, or 1.55%, at 1,395.41 in its biggest advance since July.
The Nasdaq composite index rose 44.46, or 1.90%, to 2,385.14. The tech-dominated index, which includes many companies consider young and risky compared to S&P 500 stocks, was particularly hard-hit in last week's slide.