U.S. Stocks Recover From Early Pullback To Close Mostly Higher

(RTTNews) - Stocks moved to the downside early in the session on Tuesday but showed a significant rebound over the course of the trading day. The Nasdaq and the S&P 500 climbed well off their early lows and into positive territory, although the narrower Dow remained stuck in the red.

The major averages eventually ended the day mixed. While the Dow fell 120.66 points or 0.3 percent to 43,268.94, the S&P 500 rose 23.36 points or 0.4 percent to 5,916.98 and the Nasdaq jumped 195.66 points or 1.0 percent to 18,987.47.

The early weakness on Wall Street came amid concerns about escalating tensions between the U.S. and Russia over the war in Ukraine.

After President Joe Biden gave Ukraine permission to attack Russian territory using U.S.-made long-range missiles, Russian President Vladimir Putin has signed a decree amending the country's nuclear doctrine.

Kremlin Spokesperson Dmitry Peskov said the updated doctrine says Russia "reserves the right to use nuclear weapons in the event of aggression with the use of conventional weapons against it or the Republic of Belarus, which creates a critical threat to sovereignty or territorial integrity."

"Aggression against the Russian Federation by any non-nuclear state with the participation or support of a nuclear state is considered a joint attack," Peskov added, according to NBC News.

Shortly before the Kremlin updated its nuclear weapons doctrine, Ukraine reportedly used U.S.-made long-range missiles to attack a Russian military facility in the Bryansk border region.

Selling pressure waned shortly after the start of trading, however, with an advance by shares of Nvidia (NVDA) helping lead the turnaround by the Nasdaq.

Nvidia surged by 4.9 percent ahead of the release of its fiscal third quarter results after the close of trading on Wednesday.

Retail giant Walmart (WMT) also showed a notable move to the upside after reporting better than expected third quarter results and raising its full-year guidance.

Meanwhile, shares of Lowe's (LOW) slumped after the home improvement retailer reported third quarter results that exceeded estimates but forecast a decrease by full-year sales.

Sector News

Computer hardware stocks extended the substantial rebound seen in the previous session, driving the NYSE Arca Computer Hardware Index up by 3.3 percent. The index continued to regain ground after hitting a two-month closing low last Friday.

Super Micro Computer (SMCI) led the sector higher once again after announcing BDO as its independent auditor and submitting a compliance plan to the Nasdaq.

Gold stocks also saw significant strength amid an increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index jumping by 2.3 percent.

On the other hand, airline stocks moved sharply lower on the day, resulting in a 4.6 percent nosedive by the NYSE Arca Airline Index.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.5 percent, while China's Shanghai Composite Index advanced by 0.8 percent.

Meanwhile, the major European markets moved to the downside on the day. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index and the German DAX Index both slide by 0.7 percent.

In the bond market, treasuries gave back ground after an early advance but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 4.379 percent.

Looking Ahead

A lack of major U.S. economic data may lead to light activity on Wednesday, although trading may be impacted by reaction to developments overseas as well as speeches by several Federal Reserve officials.