Wall Street remained on the road to recovery Tuesday from a two-week sell-off as investors showed confidence that the Federal Reserve will continue to do what it can to support the economy. The Fed began two days of talks on Tuesday and will make a policy announcementWednesday.
Even though most of the gains evaporated by day's end - The Dow was up for the third straight session. The S&P 500 rose 17 points. The Nasdaq rallied more than a full percent.
So has the market downturn of the past two weeks run its course? Jeff Tomasulo, president, Vespula Capital isn't sure.
"The pattern that we have seen over the last six months is that every sell-off in the market is bought. We've had a significant sell-off in the Nasdaq. It went down almost 12 percent in a very short period of time. Now it is bouncing back. Now the key here is to watch over the next few days and next week, can it gain momentum to the upside? And if it can't and it starts to rollover, I think the correction continues to the downside."
Apple took the wraps off new products aimed at capitalizing on two trends: the rise of working-from-home and fitness at home. The world's most valuable company unveiled two new Apple Watches: a higher-priced model that can monitor blood oxygen and a cheaper $279 model without that perk. It also launched a digital fitness service and Apple One - a pay-one-price subscription for Apple TV+, Apple Music, Apple Arcade, Apple News and the fitness service. Shares of Apple wobbled on the news to finish higher.
In other corporate news: Carnival warned it will be hit with a $2.9 billion quarterly loss. Like most of the travel industry, the pandemic has grounded cruises to a virtual halt. The stock was hammered - falling nearly 11 percent.
And Citigroup had a down day. Federal regulators are preparing to reprimand Citigroup for failing to improve risk-management systems, according to a Wall Street Journal report. Citigroup didn't respond to a Reuters request for comment. Shares of the bank fell roughly 7 percent.