Bank stocks had been hit hard last week by the Federal Reserve’s decision Thursday to hold its key interest rate at zero; a higher interest rate could boost profits.
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The Dow Jones industrial average climbed 90 points, or 0.6 percent, to 16,471 as of 12:24 p.m. Eastern time.
General Motors fell 2.6 per cent and Ford 3.0 per cent. US-traded shares of Fiat Chrysler Automobiles slid 5.1 per cent. Bank of America dipped 0.9 percent ahead of a shareholder vote on whether chief executive Brian Moynihan will keep his title as chairman of the board.
United States stock futures took a sharp turn south on Tuesday and looked set to wipe out the previous session’s gains.
Drugmakers slumped on concern of new regulations to control pricing following comments from Democratic presidential front-runner Hillary Rodham Clinton.
Lennar (NYSE:LEN) popped 3% early but reversed to a loss of more than 1%.
EUROPE’S DAY: Britain’s FTSE 100 index rose 0.1 percent while the CAC-40 in France climbed 0.7 percent.
USA total existing-home sales fell 4.8 percent to a seasonally adjusted annual rate of 5.31 million in August, missing market consensus of 5.50 million, said the National Association of Realtors Monday. Tokyo was closed for a public holiday.
Given the scale of recent declines, markets are liable to stage short-term rebounds unless additional bad news on the economy arrives, said Valentijn van Nieuwenhuijzen, head of multiasset investments at NN Investment Partners, which oversees EUR184 billion. The measure of market turbulence known as the VIX fell 2.1 percent Monday to 21.79. Specifically, a barrel of U.S.-produced crude was 2.8% lower at $45.67.
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CURRENCIES: The euro was down 0.9 per cent at $1.1205 while the dollar rose 0.3 per cent to 120.36 yen. Brent crude, used to price global oils, gained 33 cents to $48.56 in London. The yield on the benchmark 10-year Treasury note rose to 2.18 percent from 2.13 percent on Friday.
