U.S. stocks rose for the third day in a row Tuesday, led by banks, retailers and technology companies. The rebound over the last few days follows a drop of more than 10 percent over the previous two weeks.
Amazon climbed once again, and athletic apparel companies rose following solid fourth-quarter results from Under Armour.
Apple continued to recoup some of its recent losses. Energy companies slipped again, and companies that distribute prescription drugs and medical supplies slumped.
Stocks have been making big swerves higher and lower recently. Last week the Dow Jones industrial average twice fell 1,000 points in a day. But on Tuesday, the gap between the Dow’s highest mark and its lowest was a more modest 284 points.
Mark Hackett, chief of investment research at Nationwide Investment Management, said investors who have steered clear of the stock market started to pile in over the last few months, but that round of buying ended abruptly.
“The pattern that we saw over the last month and a half is not by any stretch of the imagination unusual,” he said, “But it is compressed. It normally doesn’t happen over a six-week period.”
The Standard & Poor’s 500 index rose 6.94 points, or 0.3 percent, to 2,662.94. The Dow added 39.18 points, or 0.2 percent, to 24,640.45. The Nasdaq composite gained 31.55 points, or 0.5 percent, to 7,013.51.