The US markets settled higher on Tuesday with Nasdaq gaining around 4% to recover from heavy losses seen in the previous session as US bond yields retreated and investors scooped up battered technology stocks. The rebound by the Nasdaq came as a pullback by long-term treasury yields contributed to significant strength among tech stocks. The yield on the benchmark ten-year note showed a notable move to the downside after ending the previous session at its highest closing level in over a year. The subsequent pullback shown by yields inspired traders to pick up tech stocks at reduced levels despite lingering concerns about inflation and the outlook for interest rates. Electric car maker Tesla showed a significant rebound after closing lower for five straight sessions, while tech giants Facebook, Apple and Amazon (AMZN) also posted strong gains.
Semiconductor stocks turned in some of the market's best performances, with the Philadelphia Semiconductor Index spiking by 6.1 percent after ending the previous session at its lowest closing level in over two months. Software, networking and computer hardware stocks also saw significant strength, contributing to the rally by the tech-heavy Nasdaq. Outside of the tech sector, gold stocks also moved sharply higher on the day. The rally by gold stocks came amid a substantial increase by the price of the precious metal, with gold for April delivery soaring $38.90 to $1,716.90 an ounce. Retail and brokerage stocks also saw notable strength on the day, while energy stocks came under pressure amid a steep drop by the price of crude oil. Meanwhile, investors were awaiting for a Labor Department report on consumer prices to be out on Wednesday, as concerns about inflation have contributed to the recent jump in bond yields.
Dow Jones Industrial Average surged 30.30 points or 0.10 percent to 31,832.74, Nasdaq Jumped 464.66 points or 3.69 percent to 13,073.83 and S&P 500 was up by 54.09 points or 1.42 percent to 3,875.44.