Wall Street breathed a sigh of relief on Tuesday after two days of declines that wiped a record $3.01 trillion off the face of global equities as results in the U.K.’s referendum on its membership in the European Union (EU) shocked markets with a decision to leave and while look ahead precisely to the first take on the so-called Brexit from a member of the Federal Reserve (Fed).
At 15:35GMT or 11:35AM ET, the Dow 30 rebounded 125 points, or 0.73%, the S&P 500rose 17 points, or 0.87%, while the tech-heavy NASDAQ Composite advanced 60 points, or 1.31%.
According to Howard Silverblatt from S&P Dow Jones Indices, the S&P 500 lost $317 billion on Monday bringing its two-day loss total to $974 billion, the third worst drop in its history.
Meanwhile, Tuesday’s economic calendar showed mostly upbeat data.
The third estimate for first quarter GDP was revised to growth of 1.1%, slightly above estimates for 1.0%, although on a negative note, real consumer spending for the first three months of the year was revised down to 1.5%, from the prior reading of 1.9%.
Still, the Conference Board’s consumer confidence jumped in June, beating market expectations with its highest read since October 2015 and bolstering optimism over the strength of consumer spending at the end of the second quarter.
In lesser reports, S&P/Case Shiller home prices came out in line with forecasts aftershowing a 5.4% rise in April.
The negative note to the Tuesday’s data came with the Richmond manufacturing index that showed activity in the sector weakening with declines in both new orders and shipments.
Still on the docket, Fed governor Jerome Powell will step up to the plate later on Tuesday to make what could be the first official comments on the Brexit, as the U.K.’s decision to leave the European Union (EU) is known, from a member of the U.S. central bank.
The speech to be delivered to the Chicago Council on Global Affairs at 23:00GMT, or 19:00ET, is titled “Recent Economic Developments, Monetary Policy Considerations, and Longer-term Prospects” and may give markets a first taste of how and if the Fed’s outlook for policy normalization has shifted in light of the British of referendum.
Fed fund futures gave a higher probability of a rate cut at the July 27 decision than a continuation of policy tightening, though markets still believe the U.S. monetary authority will stand pat for the rest of the year.
Meanwhile, oil too staged a recovery from seven-week lows with sentiment further bolstered by concerns over supply disruption in Norway, where about 755 workers on seven oil and gas fields could go on strike from Saturday if a new wage deal is not agreed before a Friday deadline.
U.S. crude futures gained 1.71% to $47.12 by 15:38GMT, or 11:38AM ET, while Brent oiltraded up 1.57% to $48.52.
In company news, Dow Chemical (NYSE:DOW) planned to cut 2,500 jobs, or 4% of its workforce, as it forges ahead with the joint venture with Dow Corning, prior to an expected merger with EI du Pont de Nemours and Company (NYSE:DD).
In other M&A news, Gannett Co Inc (NYSE:GCI) will pick up ReachLocal Inc (NASDAQ:RLOC) for $156 million, while SolarCity continued to analyze the takeover offer from Tesla (NASDAQ:TSLA).
General Electric (NYSE:GE) made three separate agreements to sell a large portion of its U.S. restaurant financing divisions as it moved ahead with plans to concentrate on industrial operations.
IHS Inc (NYSE:IHS) reporting earnings-per-share of $1.60, beating the consensus forecast by 12 cents.
Nike was scheduled to report earnings after the market close.