Wall Street closes substantially higher led by tech and healthcare
|- All 11 major sectors finished the day with gains on Tuesday.
- Technology, which was oversold during last week's bearish run, rose more than 3%.
- Upbeat earnings figures boost financials and healthcare.
With investors shifting their attention to the third quarter earnings reports, major equity indexes gained traction and recorded strong gains.
After suffering heavy losses during last week's meltdown, the S&P 500 Technology Index rebounded strongly on Tuesday and led all the 11 major sectors with a 3.02% daily increase. Moreover, boosted by the better-than-expected quarterly profit figures announced by Goldman Sachs and Morgan Stanley, the S&P 500 Financials Index added 1.6%. Additionally, on the back of sharp increases seen in Johnson & Johnson and UnitedHealth shares, the S&P 500 Healthcare Index rose 2.9%.
Commenting on today's trading action, "It’s mostly an oversold bounce. The degree of the move is a function of the moves we have seen already this month more than anything else,” Willie Delwiche, investment strategist at Baird in Milwaukee, told Reuters.
Both the Dow Jones Industrial Average and the S&P 500 recorded their biggest daily percentage gains in nearly 7 months as they closed 2.19% and 2.16%, respectively. Meanwhile, the Nasdaq Composite added 215.55 points, or 2.9%, to 7,646.30.
DJIA technical outlook by FXStreet Chief Analyst Valeria Bednarik
The index is now trading at the lower end of Thursday's range, having recovered sharply above the 100 DMA, currently at 25,566. In the daily chart, the 20 DMA maintains its bearish slope over 400 points above the current level, while technical indicators head north almost vertically, up from extreme oversold readings but still within negative ground.
According to technical readings in the 4 hours chart, the index is poised to extend its advance, as its closing the day at its highs, far above a now bullish 20 SMA, as technical indicators maintain a strong upward momentum well into positive territory.
Support levels: 27,733 - 25,680 - 25,629.
Resistance levels: 25,815 - 25,871 - 25,940.
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