Wall St bounces back as bargain hunters move in
NEW YORK (REUTERS) - United States (US) stocks rebounded on Tuesday, buoyed by encouraging earnings, as the market attempted to steady in the wake of its largest sell-off in months a day earlier.
The Standard & Poor's 500 fell nearly 3 per cent over the previous two sessions, including Monday's slide, which was the worst drop for the benchmark index since June. The sell-offs were triggered by weaker-than-expected US data, as well as concerns over growth in China and the outlook for some emerging economies.
The drop proved enticing for investors looking for bargains as emerging market concerns retreated and their currencies moved off recent lows. The S&P's consumer discretionary and financial stocks were among the best-performing sector indexes.
Investors have focused on macroeconomic data in the wake of a rout in emerging market currencies, which triggered rate hikes by some central banks. That pressured stocks and bonds and forced investors to favor assets perceived as relatively safe, like the yen, US Treasuries and German government debt.