US stocks rallied to rebound from a lower opening shaking off a decline in European equities and fears over Greece’s bailout talks to turn positive led by rallies in Energy and Material stocks.
All of the country’s major indexes turned lower immediately after the bell on mounting concern over Greece’s perilous financial situation.
They, however, pared losses after reports that Greece and her international lenders had reached a consensus on the terms of a bailout agreement after a flurry of diplomatic activity between the two parties.
“Yesterday was a microcosm of what we’ve seen for several months now — big intraday swings, only to end up little changed,” Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts, told Bloomberg.
“The focus is on Friday’s big employment number, and there’s a lot of indecision. If the situation in Greece deteriorates, it leaves a lot of downside potential for the U.S. stock market.”
The S&P 500 Index most recently added 4.67 points or 0.22% to trade at 2114 points with seven of its ten main sectors trading higher led by energy and materials
The Dow Jones Industrial Average most recently traded 30 points or 0.2% higher at 18,070 points to recover Monday’s losses. The blue chip index was trading more than 100 points lower at some points in the morning.
The technology heavy Nasdaq Composite was most recently 14.17 points or 0.3% higher at 5094.73 points.
Also aiding the market rally was weaker than expected economic data and comments by a Federal Reserve board member which helped allay fears of a sooner than expected rate hike.
“Interest rates are not going to matter if they’re rising because of the strong economy and earnings growth, and we’re not seeing evidence of either,” Warren West, head trader at Greentree Brokerage Services in Philadelphia, told Reuters.
“So, we’re stuck in the lateral type of pattern until we get some clarity on the broader economy.”
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