UPDATED: The Dow Jones Industrial Average and other major U.S. stock indices on Tuesday bucked the global downturn of the past 24 hours and recovered some of Monday’s historic losses. But it was still a volatile day for the markets at a time when concerns about inflation, rising interest rates and a growing federal debt load as a result of tax reform legislation are clearly growing for investors.
The Dow was down more than 500 points just after the 9:30 a.m. ET opening bell but quickly recovered and moved into positive territory. It closed the day with a 567-point gain, up 2.3%, reclaiming about half of what was lost on Monday with its 4.6% plunge.
The NASDAQ and S&P 500 also ended the day with gains — 2.1% and 1.7%, respectively — that helped offset Monday’s drop.
The performance of U.S. markets today was seen as a gauge of how significant of a correction is in store for share prices. The hard-charging bull market that picked up steam last year sent the 30 stocks in the Dow index to close at a record high on Jan. 26 of 26,616.71 points. Tuesday’s close brought it to 24,912.77.
On Tuesday, the Dow seesawed in the first three hours of trading but did not slip below a 2% decline after the initial opening drop. The NASDAQ and S&P 500 also stayed in positive territory by slim margins.
Media stocks were also generally on the upswing compared to Monday. Discovery Communications enjoyed a 4.6% bounce to close at $23.84. AMC Networks was up 4.4% ($51). Netflix regained its losses from Monday, closing with a 4.5% gain to $265.72.
Apple ($163.03), Amazon ($1442.84), and Facebook ($185.31) registered 2%-4% gains after shedding value on Monday. 21st Century Fox ($36.42) also logged a 2.4% improvement.
Disney, which reported fourth-quarter earnings after the market closed, inched up 1.2% ($106.17). Viacom ($31.25) and Comcast ($39.67) registered small gains while CBS Corp. ($53.81) ended the day off less than 1%.