Markets Shake Off Delta Variant Fears

Stocks jumped on Wall Street Tuesday, making up much of the ground they lost a day earlier when worries flared about spreading cases of the more contagious delta variant of COVID-19. It was the latest rebound following a pullback as investors continue to try and assess how badly rising infections will hurt the economic recovery. The S&P 500 rose 1.5% to 4,323.06, a day after its biggest drop since May. The Dow Jones Industrial Average rose 549.95 points, or 1.6%, to 34,511.99. The Nasdaq rose 223.89 points, or 1.6%, to 14,498.88. The Russell 2000 index of smaller companies rose 63.62 points, or 3%, to 2,194.30.

The yield on the 10-year Treasury rose to 1.21% but remains well below where it was last week, a sign investors remain cautious. Airlines and other stocks that sank a day earlier were back in the winning column. Technology, financial, industrial,and health care stocks also powered a big share of the benchmark index's broad gains. The sharp one-day rebound for the broader market shows yet again just how choppy trading has been as investors try to figure out the lingering virus' impact on inflation, the broader economy, and businesses ranging from airlines to banks, the AP reports. The broader market has managed to keep gaining ground even with all the churn and the benchmark S&P 500 notched several records over the last few weeks.

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