After showing a strong move to the upside early in the session, stocks continue to see considerable strength in afternoon trading on Tuesday. The upward move on the day has partly offset the sell-off seen over the three previous sessions.
Currently, the major averages are off their best levels of the day but still firmly positive. The Dow is up 316.27 points or 0.9 percent at 34,882.44, the Nasdaq is up 213.96 points or 1.6 percent at 14,004.88 and the S&P 500 is up 46.89 points or 1.1 percent at 4,448.56.
The rebound on Wall Street comes amid easing geopolitical concerns following news Russia is pulling back some troops from the Ukrainian border.
Russian Defense Ministry spokesman Igor Konashenkov said units from Russia’s southern and western military districts, which border Ukraine, have already begun returning to their bases after completing combat training.
The news has helped ease concerns about a Russian invasion of Ukraine, which members of the Biden administration recently warned could be imminent.
Concerns about a destabilizing conflict between Russia and the Ukraine have weighed on stocks over the past few sessions.
While the dispute between Russia and Ukraine has not been resolved, the troop pullback will allow traders to breathe a sigh of relief.
Meanwhile, traders have largely shrugged off a report from the Labor Department showing U.S. producer prices jumped by much more than expected in the month of January.
The Labor Department said its producer price index for final demand surged up by 1.0 percent in January after rising by an upwardly revised 0.4 percent in December.
Economists had expected producer prices to increase by 0.5 percent compared to the 0.2 percent uptick originally reported for the previous month.
Excluding prices for food, energy and trade services, core producer prices advanced by 0.9 percent in January after climbing by 0.4 percent in December.
At the same time, the Labor Department said the annual rate of producer price growth slowed to 9.7 percent in January from 9.8 percent in December. Economists had expected the yearly growth to slow to 9.1 percent.
The annual rate of growth in core producer prices also decelerated to 6.9 percent in January from 7.0 percent in December.
Airline stocks continue to turn in some of the market’s best performances on the day, with the NYSE Arca Airline Index soaring by 5 percent.
Substantial strength also remains visible among semiconductor stocks, as reflected by the 3.8 percent spike by the Philadelphia Semiconductor Index.
Shares of Tower Semiconductor (TSEM) have skyrocketed after the Israeli chipmaker agreed to be acquired by Intel (INTC) for approximately $5.4 billion in cash.
Networking stocks also continue to see considerable strength on the day, resulting in a 3.6 percent surge by the NYSE Arca Networking Index.
Arista Networks (ANET) is leading the sector higher after reporting better than expected fourth quarter results and providing upbeat guidance.
Computer hardware, brokerage and chemical stocks have also moved notably higher, while gold and oil stocks are bucking the uptrend amid decreases by the prices of their associated commodities.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index and Hong Kong’s Hang Seng Index both slid by 0.8 percent, although China’s Shanghai Composite Index bucked the downtrend and rose by 0.5 percent.
Meanwhile, the major European markets showed strong moves back to the upside on the day. While the U.K.’s FTSE 100 Index jumped by 1 percent, the French CAC 40 Index and the German DAX Index surged up by 1.9 percent and 2.0 percent, respectively.
In the bond market, treasuries have climbed off their worst levels of the day but continue to see notable weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4 basis points at 2.036 percent.
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