By Yasin Ebrahim
Investing.com – The S&P 500 rebounded Tuesday, recovering from the prior-day rout as bargain-seeking investors piled into beaten down cyclical stocks amid a rebound in U.S. bond yields.
The rose 1.7%, the gained 1.7%, or 584 points, the Nasdaq was up 1.8%.
The rose above 1.2% after dropping to 1.14% earlier in the session, providing a much needed boost to financials, mostly bank stocks following Monday’s selloff.
JPMorgan (NYSE:), Goldman Sachs (NYSE:) and Bank of America (NYSE:) rose more than 2%.
The selloff on Monday was largely attributed to fears that a resurgence in Covid-19 infections would stall the recovery. Others, however, suggest the selloff was also likely driven by investor positioning.
“Although, with the economic recovery more than solid and nominal case numbers still extremely restrained, the drop-off is also likely a reflection of ’positional issues’ in the market, as one news outlet described it,” Stifel said.
But some on Wall Street suggest the economy has transitioned from a...read more...