Markets looking up
NEW YORK (AP) -- Wall Street got back to focusing on the economy instead of the Federal Reserve on Tuesday, sending stocks higher.
The major U.S. stock indexes closed higher, with the Dow Jones industrial average shooting up 100.75 points, or 0.7 percent, to 14,760.31.
The triple-digit rise in the Dow continues a bout of market volatility caused by investors and traders who are worried about the Fed ending its economic stimulus.
The Dow plunged by triple digits on three of the next four trading days, with investors worried that the market would struggle without the Fed propping it up.
Some investors have concluded that the recent sell-offs were overblown. Quincy Krosby, a market strategist at Prudential Financial, guessed that shorter-term traders were the ones buying stocks Tuesday because they judged that parts of the market were "oversold."
Among the biggest gainers were big dividend payers like phone and power companies. These are stocks that have been hit the hardest by the recent sell-off.
Ben Schwartz, chief market strategist at Lightspeed Financial in Chicago, described Tuesday as a day for the market to stabilize after the recent big plunges. But he predicted that the market could be volatile for the rest of the year, and others said they thought the stock indexes had already reached their high points.
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