NEW YORK (AFP) – Wall Street stocks rebounded on Tuesday, Oct.5 from the decline in the previous session, as uncertainty surrounding Washington’s policy and the upcoming earnings season fueled volatility.
Among the major indexes, the biggest winner was the tech-rich Nasdaq, which led the market lower on Monday.
The conflict in Congress has raised concerns about a possible default on US debt, while President Joe Biden’s agenda hangs in the balance.
Data showed the U.S. service sector grew slightly more than expected in September, while PepsiCo’s results also beat estimates. The strong earnings contrast with other recent disappointments in earnings.
“We’ll see more of that in the next few weeks,” Maris Ogg of Tower Bridge Advisors predicted of the next season’s results.
“We’re going to get some early announcements and go from great to bad for the next two weeks.”
The benchmark Dow Jones Industrial Average closed at 34,314.67, up 0.9%.
The general S&P 500 index rose 1.1% to 4,345.73, while the Nasdaq composite index rose 1.3% to 14,433.83.
After falling on Monday, major tech stocks had a much better session, with Alphabet, a parent of Apple and Google, climbing above 1% while Netflix gained more than 5%.
Facebook also rose, gaining 2.1% even as whistleblower Frances Haugen lambasted the company’s conduct in a withered congressional hearing that stepped up discussions over new regulations.
PepsiCo gained 0.6% as it raised its full-year guidance after better-than-expected earnings.
Oil-related companies continued to rebound amid rising energy prices, with Marathon Oil and Devon Energy both surging more than 3%.