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Stocks Recover After Worst Day Of the Year

Stocks Recover After Worst Day Of the Year


The stock market on Tuesday rebounded after its worst day of the year.

The Dow Jones industrial average rose 157.58 points, or 1.1 percent, on Tuesday, to 14,756.78, winning back more than half of the 265 points it lost a day earlier. The Standard & Poor's 500 index climbed 22.2 points, or 1.4 percent, to 1,574.57.

Monday's market decline was the biggest since November 7, the day after Election Day.

Worries about Federal Reserve policy and the economic slowdown in China led to a drop in the price of oil, copper, and other commodities, causing mining and energy stocks to fall. The rally had already slowed earlier this month after March’s terrible jobs report.

Gold, which was at the epicenter of Monday's sell-off, rose 1.9 percent to $1,387.40 an ounce.

The precious metal plunged 9 percent Monday, its steepest fall in 30 years. Investors were spooked after China reported economic growth of 7.7 percent, slower than many forecasts. They also sold the metal following another report of low inflation.

Gold is down 27 percent since it climbed to a record of $1,892 an ounce in August 2011.

Mining companies rose Tuesday as commodities markets stabilized. Materials stocks gained the most of the 10 industry groups in the S&P 500 after leading the market lower the day before. Home builders advanced following the housing report. PulteGroup rose 4.2 percent to $18.60 and Lennar climbed 2.4 percent to $38.70.

In other trading, the Nasdaq composite rose 48.14 points, or 1.5 percent, to 3,264.63.

Yields on U.S. government bonds rose as investors moved money out of safe investments. The yield on the benchmark 10-year Treasury note climbed to 1.72 percent from 1.68 percent.

Follow Becket Adams (@BecketAdams) on Twitter

The Associated Press contributed to this report.

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