The Nasdaq composite and small-cap stocks led a bounce on Wall Street Tuesday, but the stock market made up less than half of the prior day's losses.
XThe Nasdaq rose 1.1%, the S&P 500 gained 0.8%, and the Dow Jones Industrial Average tacked on 0.8%. Indexes lost some gains late in the session as the market showed some signs of caution even as it rallied.
The S&P 500 and Nasdaq remained below the 50-day moving average after Monday's rout, which left the market outlook weaker. In one positive sign, the Dow rose back above its 50-day line. The Russell 2000 climbed 1.3% at the close, a good day for small caps.
Volume fell from Monday's totals, according to early data. That's an indication that buyers couldn't match the fervor sellers displayed in Monday's rout. Volume was above average Monday in the major exchanges.
Technology A Top Sector In Stock Market
The technology sector, one of Monday's biggest losers, led the market Tuesday. Technology Select Sector SPDR ETF (XLK) rose more than 2%. If the market gets back to a confirmed uptrend but there aren't leading tech stocks to buy immediately, an ETF can help investors participate in a new rally.
Semiconductors headed the tech-sector bounce, as the Philadelphia semiconductor index jumped 2.4%.
The transportation, retail, industrial and energy sectors — all vulnerable to the U.S.-China trade war — were up 1.5% or more.
Trade worries remain a cloud over Wall Street, and developments on that front are likely to move the market. A UBS analyst warned that the trade dispute could result in 12,000 store closures for soft-line retailers.
It was a much better day for leading stocks, as the Innovator IBD 50 ETF (FFTY) climbed more than 2%. With the market in a poor state, investors should avoid buying stocks for now, even as a few top-rated stocks topped buy points.
Tradeweb Markets (TW) broke out of an IPO base, rising past the 44.35 buy point. Volume appeared to be weak for the electronic financial markets operator, however. Also, the stock closed below the entry.
The payment processing industry group continues to move up the rankings, and in that group Everi Holdings (EVRI) broke out. The Las Vegas-based provider of cash-access services to casinos rose past the 10.79 buy point of a flat base. It closed just below it.
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