Dow climbs 425 points as investors try to recover from the worst stock sell-off in 2 years

Dow climbs 425 points as investors try to recover from the worst stock sell-off in 2 years
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  • US stocks gained ground Tuesday as investors return from Monday's holiday break.
  • Goldman Sachs and others are putting out warnings about recession.

US stocks advanced Tuesday with investors starting their return from a holiday break by setting aside a round of warnings about economic recession and hunting for bargains after last week's steep decline.

The S&P 500 moved up after last week's dive of 5.8% that marked its worst weekly performance since March 2020, with markets rattled after the Federal Reserve raised interest rates by 75 basis points to cool scorching inflation.

Trading was closed Monday for the observation of Juneteenth. Investors returned from the break to recession warnings from Goldman Sachs, Bank of America, Nomura, and even Tesla CEO Elon Musk in an interview with Bloomberg.

Investors this week tune into Federal Reserve Chairman Jerome Powell's testimony before lawmakers about his views of the world's largest economy.

"In this holiday-abridged week investors are likely to focus on clues as to whether or not the markets have already hit bottom," John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, in a note published Tuesday. "In our experience over the last 39 years dealing with the markets there never is an "all clear" signal of when to invest. Identifying the bottom (as well as the top) is always easiest to find in hindsight. This time appears no different."


Here's where US indexes stood at 9:30 a.m. on Tuesday:

Around the markets, Cathie Wood warns the Fed could cause a recession if it keeps hiking interest rates.

Russia is now China's biggest oil supplier, overtaking Saudi Arabia.

Oil prices moved higher. West Texas Intermediate crude gained 2% at $116.64 per barrel. Brent crude, the international benchmark, rose 1.4% to $115.68.

Gold slipped 0.1% to $1,839.30 per ounce. The 10-year yield rose 5 basis points to 3.3%.


Bitcoin gained 2.3% at $21,110.21.