On Tuesday (8/22), U.S. stocks gained in late morning trading, with the three major indexes positioned for their best one-day percentage increases in over a week, led by a rebound in technology and materials companies.
Nine of the 11 major S&P sectors advanced, with the tech index advancing 1.2 percent, hiking for the first time in four days.
The materials index spiked more than 1 percent, poised for its best day in a month, driven by rising commodity and metals prices.
The absence of major news from the White House and on the tensions between the United States and North Korea – two key factors that shook the market in the past two weeks – also helped ease nerves.
“As the pockets of political worries that have caused short-term spikes and volatility ebb and flow, the market is rightfully focused on the solid fundamentals,” stated Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company.
“We’ve had a decent economic backdrop against moderate inflation. As long as inflation remains moderate, I think the market continues to move higher”.
During Tuesday morning’s trading session, the Dow Jones Industrial Average gained 132.09 points, or 0.61 percent, at 21,835.84, the S&P 500 increased 16.08 points, or 0.66 percent, at 2,444.45.
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The Nasdaq Composite hiked 62.86 points, or 1.01 percent, at 6,275.99.
Currently, 243 stocks have reached new 52-week highs, while 230 have reported fresh 52-week lows across U.S. exchanges. If the ratio holds, it will mark the first time in ten sessions that more stocks have hit highs than lows.
Investors also wait for the annual central bankers meeting in Jackson Hole, Wyoming, set to begin on Thursday (8/24). Federal Reserve Chair Janet Yellen’s speech on Friday will be closely monitored for a steer on U.S. monetary policy, but central bank observers do not anticipate her to give new guidance. Advancing issues outnumbered decliners on the NYSE by 1,981 to 759. On the Nasdaq, 1,921 issues increased and 776 declined.