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US: Stocks recover after historic falls

[NEW YORK] US stock markets bounced after a torrid opening on Tuesday, bargain-hunters and gains for Apple pushing the tech-heavy Nasdaq and the Dow Jones Industrial Average into positive territory after two days of heavy losses.

Both the S&P 500 and the Dow sank more than 4 per cent on Monday, their biggest falls since August 2011, as concerns over rising US interest rates and government bond yields hit record-high valuations of stocks.

New York's three main indexes sank as much as 2 per cent on the opening bell but they quickly moved back into positive territory.

An almost 2 per cent gain for Apple was at the heart of an almost half percent gain for the Nasdaq Composite.

"Daily drops of 3 percent or more have been buying opportunities for the S&P 500 post financial crisis," said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets.

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At 9.49 am ET (1449 GMT), the Dow Jones Industrial Average gained 0.25 per cent to 24,406.14. The S&P 500 rose 0.2 percent to 2,654.25 and the Nasdaq 0.4 per cent to 6,993.47.

REUTERS

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