NEW YORK (AP) — U.S. stocks are rallying Tuesday after companies reported fatter profits than expected, and other U.S. investments are also steadying a day after falling sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.
The S&P 500 was 2.8 percent higher in afternoon trading. The Dow Jones Industrial Average was up 1,071 points, or 2.8 percent, as of 12:24 p.m. Eastern time, and the Nasdaq composite was 3.3 percent higher. Every major index has so far recovered from their sharp drop on Monday.
The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier. Sharp, unusual moves in those markets have recently raised worries that Trump’s policies are making investors more skeptical that U.S. investments still deserve their reputations as the world’s safest.
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