The U.S. stock prices today staged their biggest rebound since the major worldwide sell-off that began last week. The Dow Jones industrials jumped 157.18 points, or 1.3 percent, to close at 12,207.59, and broader market indexes also were up sharply. Wall Street rebounded Tuesday as investors were optimistic by a recovery on world markets and moved to recoup some of the big losses suffered in last week’s sharp pullback.
However, despite the recovery, questions still remain about whether the downward spiral that swept around the globe had truly run its course. US investors are even now contending with fundamental economic issues, including a weaker-than-expected reading on fourth-quarter productivity and the dollar’s weakness against the yen.
In the meanwhile, Wall Street experts have welcomed the jump in share prices; however many analysts have said that it was due largely to technical factors, such as large investors closing out ’short’ sales, or speculations that stocks would fall further. Analysts are still not confident as they are of the view that it is too early to conclude if the downturn has run its course.
As a matter of fact, amidst moderate and guarded speculations that the crisis has ended U.S. stocks made a comeback on Tuesday as opportunities to buy cheap shares in beaten-down sectors like financial services allured some investors back into the market after nearly a week of sharp declines.
