Dow rallies more than 1,500 points in two days

Oct 4, 2022, 2:21 PM | Updated: Oct 6, 2022, 3:12 pm

NEW YORK, NEW YORK - OCTOBER 03: Traders work on the floor of the New York Stock Exchange during af...

NEW YORK, NEW YORK - OCTOBER 03: Traders work on the floor of the New York Stock Exchange during afternoon trading on October 03, 2022 in New York City. Stocks closed up on the first day of trading in October, starting the fourth quarter of the year on a positive note. (Photo by Michael M. Santiago/Getty Images)

(Photo by Michael M. Santiago/Getty Images)

(CNN) — Is the worst really over on Wall Street? It’s too soon to say. But stocks rose sharply again Tuesday following Monday’s big rally.

The Dow surged 825 points, or 2.8%. The Dow has soared more than 1,500 points in the past two days. It is now back above the key 30,000 milestone and is about 18% off its most recent record high, meaning that it is no longer in a bear market.

The S&P 500 and Nasdaq gained 3.1% and 3.3%, respectively. But both of those indexes remain in bear territory, at more than 20% off their all-time highs.

It appears that the market bears may be going into hibernation, at least temporarily. Not even the news of North Korea firing a missile over Japan was enough to stop the bulls from celebrating.

“It almost feels like a panic rally. The market mood got way too sour and people started to jump in,” said Callie Cox, US investment analyst with eToro. “But this rally feels random. It’s great to see stocks go up but these moves are a little disorienting. I’m being cautious.”

The market’s mood has improved due to renewed hopes that banking giant Credit Suisse will be able to avoid a financial meltdown similar to Wall Street firm Lehman Brothers 14 years ago.

There have been growing fears that Credit Suisse is in serious trouble. But the bank’s stock price has rebounded in the past two days and the cost to insure Credit Suisse’s bonds fell too. That’s a sign that investor anxiety about the bank’s future has subsided somewhat.

Major European stock exchanges have rallied in the past few days as well as jittery investors relax a bit. One fund manager noted that there are more companies that look attractive lately given the large pullback in global markets so far this year.

“There are opportunities within Europe. There are some companies we have admired from afar that are getting interesting,” said Louis Florentin-Lee, a manager with the Lazard International Quality Growth Portfolio.

In other corporate news, semiconductor stocks got a boost after chip giant Micron announced plans to spend $100 billion over the next two decades to build a new plant in upstate New York. Shares of Micron gained 4%. Fellow semiconductor companies Intel, Nvidia, and AMD rallied as well.

Shares of Twitter surged 22% after Elon Musk once again offered to buy the social media site for $44 billion, or $54.20 a share. The stock was halted earlier in the day following reports of the Musk deal.

Betting on the Fed being less hawkish

A smaller than expected interest rate hike by The Reserve Bank of Australia also is lifting spirits on Wall Street. Central banks around the world are boosting rates to fight inflation. But economic and market uncertainty could lead the Federal Reserve and other banks to slow the pace of rate increases.

The worry is that overly aggressive rate hikes could lead to a significant recession. CEOs surveyed by KPMG US are predicting a downturn in the next 12 months and they are worried that it won’t be mild or short.

But bond investors are now starting to price in the possibility that the Fed will pull back on its rate hiking spree. The benchmark 10-year US Treasury yield, which briefly spiked to 4% and hit its highest level since 2008 last week, has since tumbled and is now back around 3.6%.

Investors no longer seem as nervous about the future as they did just a week ago either. The VIX, a key indicator of volatility on Wall Street, fell about 3% Tuesday.

The CNN Business Fear & Greed Index, which looks at the VIX and six other measures of market sentiment, moved out of Extreme Fear territory as well. But it remains at Fear levels.

The-CNN-Wire ™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

National News

Former President Donald Trump attends his civil fraud trial on Dec. 7, in New York City.
(David Dee...

Jeremy Herb and Kara Scannell, CNN

Trump says he’s not testifying in his civil fraud trial Monday

Former President Donald Trump wrote on his social media platform Sunday that he is no longer planning to testify in his civil fraud trial in New York on Monday.

1 hour ago


Chandler Watkins, CNN

Over 50 pounds of fentanyl seized in largest fentanyl bust by Oregon sheriff’s office

The Multnomah County Sheriff’s Office said a months-long investigation ended in several arrests and resulted in one of the largest fentanyl seizures in state history and the largest in agency history.

3 hours ago

Amber Gardner looks at the debris from a friend's destroyed house in the West Creek Farms neighborh...

Kristin M. Hall, The Associated Press

Tennessee residents clean up after severe weekend storms killed 6 people and damaged neighborhoods

Central Tennessee residents and emergency workers cleaned up Sunday from severe weekend storms and tornadoes that killed six people and sent dozens more to the hospital while damaging buildings, turning over vehicles and knocking out power to tens of thousands.

3 hours ago

This March 20, 2018, file photo shows the Spotify app on an iPad in Baltimore. Spotify’s chief fi...

Mary Culbertson

Spotify CFO announces departure from company days after third round of layoffs

Spotify’s chief financial officer, Paul Vogel, is leaving next year, the music streaming service said — just days after the company announced its third round of layoffs for 2023.

5 hours ago

Secretary of State Antony Blinken appears on CNN's "State of the Union" on December 10. (CNN)...

By Jack Forrest and Sam Fossum, CNN

Blinken calls sexual violence inflicted by Hamas ‘beyond anything I’ve seen’

Secretary of State Antony Blinken forcefully condemned Hamas for sexual violence during the Oct. 7 attacks, and criticized those who were not quick enough to do the same.

6 hours ago

FILE - This Jan. 22, 2018, file photo, shows Rev. Martin Luther King Jr.'s birth home which is oper...

Brianna Chavez

Utahn recounts how attempted arson at the birth home of Martin Luther King Jr. was prevented

Several bystanders, including two from Utah, were able to prevent a 26-year-old woman from burning down the birth home of Martin Luther King Jr. Thursday evening. The incident has since sparked national attention.

20 hours ago

Sponsored Articles

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

Design mockup half in white and half in color of luxury house interior with open plan living room a...

Lighting Design

Lighting Design 101: Learn the Basics

These lighting design basics will help you when designing your home, so you can meet both practical and aesthetic needs.

an antler with large horns int he wilderness...

Three Bear Lodge

Yellowstone in the Fall: A Wildlife Spectacle Worth Witnessing

While most people travel to this park in the summer, late fall in Yellowstone provides a wealth of highlights to make a memorable experience.

a diverse group of students raising their hands in a classroom...

Little Orchard Preschool

6 Benefits of Preschool for Kids

Some of the benefits of preschool for kids include developing independence, curiosity, and learning more about the world.

Dow rallies more than 1,500 points in two days