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Dow stages 550-point comeback after harsh sell-off as investors remain optimistic on growth

Emily Graffeo   

Dow stages 550-point comeback after harsh sell-off as investors remain optimistic on growth
Stock Market1 min read

  • US stocks staged a comeback Tuesday after a harsh sell-off the previous day as investors bet on the continued strength of the economic recovery.
  • Re-opening stocks in travel, restaurants, and lodging all rallied Tuesday.
  • Bitcoin struggled to break back above $30,000.

US stocks staged a comeback Tuesday after a harsh sell-off the previous day, with the Dow rebounding 550 points as investors bought the dip and bet on the continued strength of the economic recovery.

Industrials, real estate, and financial stocks gained the most out of any sectors in the S&P 500. Industries that hinge on the economic re-opening like restaurants, travel, and lodging all ended the day in the green.

On Monday the S&P 500 faced its steepest decline since May while the Dow Jones saw its largest daily drop for the year.

Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:

JPMorgan's head of US equity strategy increased his year-end S&P 500 price target to 4,600 from 4,400, representing potential upside of 8% from Monday's close. Dubravko Lakos-Bujas remained constructive on equities, and views the latest fears of slowing economic growth "premature and overblown," according to a Tuesday note.

Billionaire investor Bill Ackman is also bullish about the economy. He told CNBC in a recent interview that he expects a "massive" economic boom in the fall.

Robinhood, the brokerage app set to go public in the coming weeks, said it expects to pay a $30 million penalty in relation to an anti-money laundering probe of its cryptocurrency business, according to an amended S-1 filed with the SEC on Monday.

The yield on the US 10-yr Treasury jumped 3.8 basis points to 1.219%, after hitting its lowest level since February on Monday.

Bitcoin slipped to $29,828 Tuesday, over 50% lower than record highs achieved in April.

West Texas Intermediate crude climbed 1.36%, to $67.32 per barrel. Brent crude, oil's international benchmark, jumped 1.59% to $69.71 per barrel.

Gold was flat at $1,809.

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