Wed Oct 09 01:53:49 UTC 2024: ## U.S. Stocks Rebound on Falling Oil Prices Amid Global Market Volatility

**NEW YORK (AP)** – U.S. stock markets bounced back on Tuesday, fueled by a decline in oil prices, which helped ease pressure on the market after a day of global market turmoil.

The S&P 500 rallied 1%, recovering all of its losses from the previous day, while the Dow Jones Industrial Average gained 0.3% and the Nasdaq Composite led the way with a 1.4% surge.

Despite the positive performance, Wall Street remained cautious amidst a volatile global market landscape. Asian markets experienced significant drops following a period of euphoria surrounding potential stimulus measures for China’s economy. Hong Kong’s Hang Seng Index plummeted by 9.4%, marking its worst day since the 2008 financial crisis.

The decline in oil prices proved to be a key factor in supporting U.S. stocks. Brent crude, the international benchmark, fell 4.6% to $77.18, its first loss in over a week. U.S. crude also dropped 4.6% to $73.57. This decline eased concerns about potential disruptions in oil supply due to escalating tensions in the Middle East.

The easing of oil prices also helped to stabilize the bond market, which had seen yields surge to their highest levels since the summer. Treasury yields edged down slightly, with the 10-year yield falling to 4.02% from 4.03% and the two-year yield slipping to 3.96% from 3.99%.

Higher Treasury yields generally make investors less willing to pay high prices for stocks, but recent economic data showing a resilient U.S. economy has fueled expectations for continued interest rate hikes by the Federal Reserve.

While the positive economic outlook suggests the U.S. may avoid a recession, it also dampens prospects for significant interest rate cuts, leading traders to scale back expectations for Fed action.

Despite the global market volatility, Big Tech stocks, including the “Magnificent Seven,” saw a positive day, with Nvidia leading the way with a 4% gain. PepsiCo also climbed 1.9% after exceeding profit expectations, although revenue fell short.

On the downside, oil-and-gas companies experienced losses, with Chevron dropping 1.6%, partially contributing to the Dow’s lagging performance.

Overall, the S&P 500 closed at 5,751.13, the Dow at 42,080.37, and the Nasdaq at 18,182.92.

The Chinese market, which had surged on anticipation of stimulus measures, saw a mixed reaction after the government outlined its economic plans. While Shanghai stocks rose 4.6% upon reopening, Hong Kong’s Hang Seng Index suffered a significant decline.

The global market volatility impacted companies with strong ties to China, with Estee Lauder and Wynn Resorts among those experiencing losses.

While the U.S. stock market rebounded on Tuesday, the global market landscape remains uncertain, with investors closely watching economic developments and potential policy responses.

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