NEW YORK (CBSNewYork/AP) — Stocks surged Tuesday afternoon on Wall Street, erasing some of the heavy losses of a day earlier, after China cut interest rates to try to boost the world’s second-largest economy.
Traders around the world welcomed the move, which came after a dayslong global sell-off triggered by fears of a slowdown in China.READ MORE: NYPD Lieutenant Shot In Ankle Apprehending Suspect In The Bronx
Investors also got some encouraging news from a survey indicating that U.S. consumer confidence rebounded this month. A separate report showed sales of new U.S. homes bounced back in July.
The Dow was up 301 points, or 1.9 percent, to 16,172 as of 1:03 p.m. Eastern time. The Standard & Poor’s 500 index gained 37 points, or 2 percent, to 1,931. The Nasdaq composite rose 134 points, or 3 percent, to 4,661.
Nine of the 10 sectors in the S&P 500 moved higher, with technology leading the pack, up 3.3 percent. Best Buy recorded the biggest gain in the index, climbing $4.35, or 15 percent, to $33.67, after the home electronics chain reported better-than-expected results for the quarter.
The Dow sank more than 588 points on Monday, while the S&P 500 index fell to more than 10 percent off its recent peak, in what investors refer to as a “correction.” The previous market correction was nearly four years ago.
The three indexes have closed lower five days in a row, with the Dow falling nearly 1,700 points in that time.