Dow rallies more than 1,500 points in two days, S&P 500 posts best 2-day gain since 2020; European stocks close 3% higher as bond yields fall and investors assess rate hikes
Stocks surged Tuesday as Wall Street built on a sharp rally seen in the previous session and bond yields continued to fall.
The Dow Jones Industrial Average rose 825.43 points, or 2.8%, to 30,316.32. The S&P 500 added nearly 3.1% to 3,790.93, and the Nasdaq Composite was up 3.3% to 11,176.41.
Shares of automaker General Motors gained 7% after the company announced sales rose 24% in the third quarter, rebounding from 2021 when supply chain issues hindered production.
Twitter leapt 22% after Elon Musk changed course and agreed to purchase the social media giant for the agreed-upon price of $54.20 a share.
The pan-European Stoxx 600 ended the day up 3%, with travel and leisure stocks jumping 6.1% to lead gains as all sectors and major bourses entered positive territory. Also significantly higher were technology stocks, up 5%, and industrials, up 4.2%.
Credit Suisse shares continued to recover on Tuesday from the previous session’s low of 3.60 Swiss francs ($3.64), but were still down more than 53% on the year.
Based on Credit Suisse’s weaker return on equity profile compared to its European investment banking peers, U.S. investment research company CFRA on Monday lowered its price target for the stock to 3.50 Swiss francs ($3.54) per share, down from 4.50 francs.
“The many options rumored to be considered by CS, including exit of U.S. investment banking, creation of a ‘bad bank’ to hold risky assets, and capital raise, indicate a huge overhaul is needed to turn around the bank, in our view,” CFRA Equity Analyst Firdaus Ibrahim said.
Source: CNBC, Investing.com