U.S. stocks bounced back from the lowest levels since July Tuesday as investors eyed bargains in battered tech stocks while tracking inflation pressures in the global economy.
Stocks were also given a boost from a stronger-than-expected reading of September services activity, the biggest component to U.S. GDP growth, which rose by 1 point to 61.9, well above the 50 point mark that separates growth from contraction.
Facebook shares gained back 1.5% of yesterday's near 5% declinethat, alongside a broader sell-off in tech stocks partly linked to rate pressures, loped more than 2.1% from the Nasdaq and spilled over into markets around the world. The slump also hived more than $6 billion from the personal wealth of founder and CEO Mark Zuckerberg.
Many of the same concerns remain foremost in investors' minds Tuesday, however, with a global energy crunch lifting oil prices to the highest in seven years, inflation momentum accelerating amid supply chain disruptions and soaring input costs, and the specter of a U.S. default as lawmakers continue to haggle over the extension of the country's $28.4 trillion debt ceiling.
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Weakness in Asia, as well, is stoking fears of a pullback in global growth and China extends its crackdown on corporate profitability and a smaller property developer -- Fantasia Holdings Group -- joined its larger rival Evergrande in missing a mandated bond payment. The broadest measure of Asia shares, in fact, slumped to the lowest levels in nearly a year as last night's tech sell-off swept through markets in Japan and Hong Kong.
Still, a solid rebound for European stocks on Tuesday, powered in part by a robust near-term outlook for chipmaker Infineon (IFNNY) , is providing firm enough platform for U.S. stocks to mount a modest comeback from yesterday's slump.
The Dow Jones Industrial Average jumped 380 points by mid-day trading while the broader S&P 500, which started the session 5% south of its September 2 peak, gained 58 points.
The Nasdaq Composite gained back 215 points even as benchmark 10-year note yields rose to 1.521% in early New York trading.
Facebook shares were one of the most active early stocks, rising 2.3% to $333.85 each, as the social media giant slowly returns to full service following its longest outage in more than a decade.
PepsiCo (PEP) - Get PepsiCo, Inc. Report shares were also on the move after the consumer brands group topped Wall Street's Q3 earnings forecast, and nudged its full-year revenue forecast modestly higher, thanks in part to an ongoing rebound in post-pandemic beverage demand.
Oil prices extended gains Tuesday, as well, with prices testing the highest levels in seven years following Monday's decision by OPEC leaders to stick to its previous plans for a small increase in production even as a rolling energy crisis in China continues to boost commodities in major markets around the world.
WTI futures for November delivery traded $1.36 higher in early New York dealing to change hands at $78.98 per barrel while Brent contracts for December, the global pricing benchmark, were up $1.47 at $82.70 per barrel.