U.S. stock indexes mounted a broad comeback Tuesday as investors set aside their anxiety over Britain’s vote Thursday to leave the European Union and snapped up shares following a two-day rout.
Encouraging data on the U.S. economy and housing market helped put traders in a buying mood. The broad rally followed even bigger gains in Europe.
Oil and gas companies led the rally as energy prices rose. Financial companies, which took the heaviest losses in the sell-off, also surged. Health care, consumer and technology stocks notched gains. Bond prices fell, sending yields higher.
“We were due for a bounce heading into the morning,” said Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute. “… Investors are stepping up and seeing some areas that may have been oversold the past couple of days and redeploying some of their cash.”
The Dow Jones industrial average gained 269.48 points, 1.6 percent, to 17,409.72. The Standard & Poor’s 500 index rose 35.55 points, 1.8 percent, to 2,036.09. The Nasdaq composite added 97.42 points, 2.1 percent, to 4,691.87. The three indexes remain on track to end June in the red. They’re also down for 2016.
European benchmarks had an even better day. Britain’s FTSE 100 and France’s CAC 40 each gained 2.6 percent. Germany’s DAX added 1.9 percent.
The British pound rose to $1.3343 from $1.3176 on Monday, still near the 30-year lows it plunged to immediately after the vote.
In the U.S., investors got a batch of encouraging data.
The Commerce Department raised its estimate of U.S. economic growth in the first three months of the year. Separately, a key gauge of home values showed U.S. home prices climbed in April, hitting record highs in several cities. And the Conference Board said its measure of U.S. consumer confidence is at its highest since October.
Earlier in Asia, Japan’s benchmark Nikkei 225 index climbed 0.1 percent, while South Korea’s Kospi added 0.5 percent.
Hong Kong’s Hang Seng Index was a laggard, losing 0.3 percent. It was dragged down by companies with high exposure to Europe, such as tycoon Li Ka-shing’s CK Hutchison Holdings, which has British retail, ports and telecom investments and fell 1.7 percent.
