Stocks on Wall Street rebounded sharply Tuesday from Monday’s sell-off.
Strong earnings from Nike and Micron lifted investor sentiment, and gains in tech titans and travel-related stocks drove the indexes higher.
Vespula Capital CEO Jeff Tomasulo said the recent market setback paved the way for opportunists to go shopping for stocks.
“When things start to sell off the way they have, there comes a point where obviously there's going to be some opportunities, right? And we had some news come out today of how Joe Biden and yeah, the President is going to handle how you know this new variant and what we're going to do with testing and lockdowns and everything else. And I think that also that helped.”
The Dow tacked on 560 points. The S&P 500 gained one-and-three quarter percent. The Nasdaq shot up nearly two-and-a-half percent.
Positive reports from Nike and Micron Technology helped allay investor concerns about supply chain constraints in an inflationary environment.
Shares of Nike jumped. The athletic apparel maker’s quarterly profit crushed Wall Street’s estimates. The company said it’s more confident that supply chain issues stemming from factory closures will ease in its next fiscal year.
Micron rose by even more, leading the advance among chipmakers. It issued a bullish earnings outlook and said it expects the chip shortage to ease next year.