Stocks took a downturn in early transactions on Tuesday but notably bounced back as the day progressed. This result significantly lifted the major averages from their lowest points of the day, swinging them into a positive sphere.
At present, the major averages are peaking. The Dow has risen by 250.31 points, standing at 0.7 percent or 39,040.74, while the Nasdaq has boosted up to 61.54 points or 0.4 percent, amounting to 16,164.99. The S&P 500 also saw a decent surge, going up 22.94 points or 0.5 percent to 5,172.36.
This significant turnaround on Wall Street is partially attributed to a comeback from Nvidia (NVDA). Nvidia's recent performance emerged as a vital action driver on Wall Street. After slumping by as much as 3.9 percent in the early session, Nvidia shares are currently leaping by 1.2 percent. Nvidia's resurgence came as traders assimilated news from the chipmaker's inaugural GTC Conference on Monday, where it showcased its latest AI chips, known as Blackwell.
Moreover, traders are also keeping an eye on the Federal Reserve's keenly expected monetary policy announcement on Wednesday. While a change in interest rates isn't anticipated, the central bank's accompanying statement and economic forecasts could noticeably influence the rate outlook. Inflation readings, which have been above expectations lately, have dampened optimism surrounding the possibility of the Fed's first rate cut in June.
In terms of the U.S. economy, the Commerce Department reported a significant rebound in new home construction in February. The department noted a 10.7 percent surge to an annual rate of 1.521 million, following a 12.3 percent downfall to a revised rate of 1.374 million in January.
Oil service stocks have seen considerable advancement during the session, hiking the Philadelphia Oil Service Index by 1.9 percent, its best in over four months. This is attributable to the drastic increase in crude oil prices. The strength among oil service stocks comes amid an abrupt increase by the price of crude oil, with April delivery seeing a rise of $1.06 to $83.78 a barrel.
Meanwhile, in overseas trading, mixed performances were reported across the Asia-Pacific stock markets on Tuesday. With Japan's Nikkei 225 Index rising by 0.7 percent, China's Shanghai Composite Index dipped by 0.7 percent. Despite this fluctuation, the major European markets steadily advanced over the session. While the French CAC 40 Index saw a hike of 0.7 percent, the German DAX Index and the U.K.'s FTSE 100 Index rose by 0.3 percent and 0.2 percent, respectively.
As the bond market sees some recuperation after a downward trend over several sessions, the benchmark ten-year note yield, which operates contrary to its price, has decreased by 3.4 basis points to 4.306 percent.
