U.S. equity markets ended Tuesday on a high note as bond yields eased off their highest level in over a year giving the Nasdaq Composite its best day since November.
The tech-heavy composite jumped over 3.6% or 464 points, while the S&P 500 added 1.4%.The Dow Jones Industrial Average gained a more modest 29 points or 0.1% giving up the bulk of earlier gains.
The rally comes a day after the Nasdaq slid into a correction, down at least 10% from its recent peak, as the 10-year yield climbed to a 13-month high of 1.59%.
On Tuesday, the benchmark yield was trading lower by 5 bps at 1.54%, falling below where it closed on Friday.
In stocks, mega-cap technology names that have been mauled amid the recent rise in bond yields were bouncing back with Tesla surging over 19%. Apple Inc. and Netflix Inc. also outperformed.
GameStop Corp. shares nabbed a sixth straight day of gains, seeing continued strength from Monday that developed after the company said Ryan Cohen, founder of online pet food supplier Chewy, would lead its e-commerce push. Fellow Reddit favorite AMC Entertainment Holdings Inc. will report after the closing bell Wednesday.
Elsewhere, Peloton Interactive Inc. announced plans to expand to the Asia-Pacific region. The company will begin selling its workout equipment in Australia later this year.
Apparel retailer Gap Inc. is considering selling its China business, according to Bloomberg News, citing people with knowledge of the matter.
In earnings, Dick’s Sporting Goods reported better-than-expected quarterly earnings and revenue but warned full-year sales may not be as strong as previously anticipated.
Personal styling platform Stitch Fix Inc. swung to a quarterly loss as holiday sales came in softer-than-expected. The company lowered its full-year revenue forecast due to shipping and processing delays.
In commodities, West Texas Intermediate crude oil fell $1.04 to $64.01 per barrel while gold spiked $38.90 to $1,716.60 an ounce.
Overseas markets were mostly higher.
Britain’s FTSE 100 rose 0.16%, while France’s CAC 40 and Germany’s DAX 30 advanced 0.36% and 0.46%, respectively.
In Asia, China’s Shanghai Composite slumped 1.82%, Hong Kong’s Hang Seng climbed 0.81% and Japan’s Nikkei 225 gained 0.99%.