Stocks Wobble A Day After Biggest Drop Since May

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  • Stocks wobble a day after the biggest drop since May
  • Health care companies make some of the biggest gains
  • Technology companies also made gains in a reversal when the sector slumped
  • A mix of industrial and financial stocks fell broadly
  • Sseveral companies are making solid gains after giving investors encouraging financial updates

Stocks wobbled between small gains and losses in morning trading on Wall Street Tuesday following a sharp pullback a day earlier. The S&P 500 rose 0.2% as of 11:14 a.m. Eastern. The Dow Jones Industrial Average rose 63 points, or 0.2%, to 34,035 and the Nasdaq rose 0.5% says an article published on Abc News.

Health care makes the biggest gains

Health care companies made some of the biggest gains. Johnson & Johnson rose 0.7% after reporting that a booster of its one-shot coronavirus vaccine provides a stronger immune response months after people receive the first dose.

Gains in tech companies

Technology companies also made gains in a reversal from Monday, when the sector slumped. A mix of industrial and financial stocks fell broadly. The yield on the 10-year Treasury held steady at 1.31%. European markets were higher, and Asian markets mostly rose. Chinese markets remained closed for a holiday.

Concerns over investors

The market sell-off on Monday was prompted in part by worries about heavily indebted Chinese real estate developers and the damage they could do if they default and send ripple effects through markets. That added to a wide range of concerns hovering over investors, including the highly contagious delta variant as well as higher prices squeezing business and consumers.

Central bank to release a policy statement

Wall Street is also gauging how the recovery’s slowdown will impact the Federal Reserve’s policies that have helped support the market and economy. The central bank will release a policy statement on Wednesday, which will be closely watched for any signals on how the Fed will eventually reduce its bond purchases that have helped keep interest rates low.

Companies making solid gains

Several companies are making solid gains after giving investors encouraging financial updates. Ride-hailing company Uber jumped 9.3% after telling investors that it could post an adjusted profit this quarter. Equipment rental supplier Herc Holdings rose 5.6% following a solid long-term growth forecast.

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Source: Abc News

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