Dow rises 641 points as markets rally from losing week

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June 21 (UPI) — U.S. markets rallied on Tuesday as markets continued to process the Federal Reserve‘s aggressive efforts to combat inflation.

The Dow Jones Industrial Average gained 641.47 points, or 2.15%, while the S&P 500 climbed 2.45% and the Nasdaq Composite rose 2.51% at the end of Tuesday’s session after markets were closed on Monday in observance of the Juneteenth holiday.

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Major indexes posted their 10th losing session in their past 11 last week with the S&P 500 turning in its worst week since 2020 as investors weighed the possibility of a recession after the Fed ordered a rare .75% interest rate hike.

Tuesday’s rebound saw 464 members of the S&P 500 finish the day in the green, with energy as the best performing sector — up 5.2%.

“The outstanding question is whether this is simply a bounce or the bottom,” Sam Stovall, chief investment strategist at CFRA Research said. “I think that this could certainly be a bounce but not the bottom because the one missing ingredient is a fear-based capitulation sell-off.”

Brent crude oil futures — the international benchmark — traded 1.1% higher to $115.32 per barrel, while the U.S. crude oil benchmark, West Texas Intermediate, climbed 2% to $111.55 per barrel to lead the rise in energy stocks.

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Shares of Diamondback energy gained 8.17%, Exxon Mobil rose 6.22%, Phillips 66 increased 6.04%, Schlumberger climbed 6.01% and Halliburton closed up 5.87%.

Major tech stocks were also on the rise Tuesday with Google parent, Alphabet, rising 4.11% while Apple gained 3.28% and Amazon climbed 2.32%.

Bitcoin rose back above $21,000 Tuesday after having fallen below $18,000 for the first time since December 2020 over the weekend.

The 10-year treasury yield also rose to nearly 3.33%.

Fed Chairman Jerome Powell is set to testify before Congress in his semi-annual address Wednesday and Thursday, providing a look at the central bank’s plans to slow down inflation.