US stocks close with solid gains after volatile session, Dow up 2.3%

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The market sell-off is an overdue correction, says Bruderman Brothers' Oliver Pursche, after US markets marked their biggest fall in more than six years.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, Feb 6, 2018. PHOTO: REUTERS

NEW YORK (REUTERS) - US stocks posted sharp gains in another wild trading session on Tuesday (Feb 6), as indexes rebounded from the biggest one-day drops for the S&P 500 and the Dow in more than six years that stalled the market's record run.

Stocks swung from negative to positive after indexes started the session 2 per cent lower, underscoring a return of volatility to a market that until recently was marked by an absence of major shifts.

The Dow had a more than 1,100-point difference between its high and low on Tuesday.

The sharp declines in recent days marked a pullback that had been long awaited by investors after the market minted record high after record high in a relatively calm ascent.

"Despite violent moves in the last couple days in the market, fundamentals in the economy are very strong and it's not just the US, it's throughout the global economy," said Alicia Levine, head of global investment strategy at BNY Mellon Investment Management in New York.

The Dow Jones Industrial Average rose 567.02 points, or 2.33 per cent, to 24,912.77, the S&P 500 gained 46.2 points, or 1.74 per cent, to 2,695.14 and the Nasdaq Composite added 148.36 points, or 2.13 per cent, to 7,115.88.

Technology, materials and consumer discretionary were the top-performing sectors on Tuesday.

Defensive sectors utilities and real estate were the only major S&P groups to end negative.

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