U.S. stocks surged in early trading Tuesday, continuing the previous day’s rally as the Dow Jones Industrial Average rose above the 30,000 mark.
At 10:30 a.m. EDT, an hour after trading started, the Dow rose 700.07 points, or 2.37%, to 30,190.96. The S&P 500 rose 97.21 points, or 2.64%, to 3,775.94, and the Nasdaq Composite was up 332.97 points, or 3.08%, to 11,174.45.
On Monday, the first day of the fourth quarter, stocks rose at their highest rates since early summer. The three indexes each posted three consecutive losing quarters in the period ending Friday.
The Federal Reserve hiked interest rates 0.75% two weeks ago. It was the third consecutive increase at the rate aimed at stifling inflation.
“With sentiment toward equities already very weak, periodic rebounds are to be expected,” Mark Haefele, chief investment officer at UBS Global Wealth Management, told CNBC. “But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates.”