US stocks rebound as buyers take advantage of drop

NEW YORK – Wall Street stocks bounced on Feb 1, recovering from the prior session’s pullback in a sign of underlying bullishness in anticipation of easing US monetary policy.

“Today shows how eager traders are to buy every dip,” said Mr Steve Sosnick, of Interactive Brokers.

“People are more fearful about missing out than they are about the potential that a stock might sell off.”

The Dow Jones Industrial Average finished up 1 per cent at 38,519.84.

The broad-based S&P 500 rose 1.3 per cent to 4,906.19, while the tech-rich Nasdaq Composite Index jumped 1.3 per cent to 15,361.64.

Major indices had tumbled on Jan 31 after Federal Reserve chairman Jerome Powell dampened expectations for an imminent cut in interest rates, saying the central bank did not expect the move in March.

But futures markets showed investors still think there is about a 38 per cent chance the Fed will cut at its next meeting.

Most large tech companies enjoyed a positive session in a reversal from the Jan 31 drop. Amazon, Microsoft and Apple all rose.

Peloton Interactive, the exercise company, plunged more than 24 per cent after it reported a US$335.4 million (S$450 million) loss in the latest quarter and offered a disappointing outlook.

New York Community Bancorp dropped 11.1 per cent, adding to the prior day’s tumble after reporting a loss. The rout has pressured other regional banks, reviving fears about the state of the industry after last spring’s failures of three midsized lenders. AFP

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