Wall Street’s main indexes rose on Tuesday as growth stocks bounced from a sharp selloff, while economy-sensitive cyclical sectors of the market remained in favor ahead of closely watched monthly payrolls data later in the week.
High-growth stocks including Apple Inc, Amazon.com Inc, Microsoft Corp, Netflix Inc and Alphabet Inc rose between 0.4 percent and 3.3 percent in early trading.
Facebook Inc was up 1.3 percent after taking a beating a day earlier, when its app and its photo-sharing platform Instagram were down for hours before being restored late in the evening.
Eight of the 11 major S&P 500 sectors were trading higher. Energy and technology led gains, while defensive utilities lagged in a sign that investors were gradually moving towards more risk-taking.
Other so-called value sectors including financials and banks also rose.
“It is impossible to get overly worried about these incredibly modest market declines, which are mostly concentrated in highly overpriced technology stocks,” said David Bahnsen, chief investment officer at the Bahnsen Group.
“The energy sector… has outperformed the market during its most volatile period of the year by a wide margin. A rotation and shift in leadership is taking place during this recent bout of market volatility and this is not a mere risk off vs. risk on story.”
At 9:54 am ET, the Dow Jones Industrial Average was up 180.70 points, or 0.53 percent, at 34,183.62, the S&P 500 was up 27.15 points, or 0.63 percent, at 4,327.61 and the Nasdaq Composite was up 118.15 points, or 0.83 percent, at 14,373.64.