Dow Rises 300 Pts As Stocks Rebound On Bargain Hunting

(RTTNews) - U.S. stocks surged higher Tuesday afternoon, recovering well after a weak start, with shares from the technology sector regaining ground after Treasury yields dropped a bit.

The early weakness was due to concerns about rising interest rates and the impact of high borrowing costs on corporate earnings and economic growth.

A downward revision in the global economic growth forecast by the International Monetary Fund hurt.

Geopolitical concerns, and the U.S. government's decision to ban export of certain items to China also contrinuted to the negative sentiment.

The Dow is up nearly 300 points or 1.02 percent at 24,501.07, rallying from a low of 29,074.23. The S&P 500, which dropped to 3,568.45, is up 10.88 points or 0.31 percent at 3,623.22, while the Nasdaq is down 17.40 points or 0.17 percent at 10,524.70, after having tumbled to 10,354.11 earlier in the day.

Shares of drugmaker Amgen climbed more than 6.5 percent, buoyed by a rating upgrade of the stock to 'overweight' by Morgan Stanley.

Walgreens Boots Alliance is up 3.5 percent and Walmart is gaining about 3.2 percent. Johnson & Johnson, Travelers Companies, 3M, Honeywell International, McDonalds, Caterpillar, P&G, Chevron and Merck are up 1 to 2.3 percent.

Salesforce.com is down by about 1.6 percent. Walt Disney, JP Morgan Chase, Verizon and Microsoft are also down in negative territory, losing 0.6 to 1.1 percent.

The mood in the market remains cautious with investors looking ahead to U.S. inflation data, minutes from the Fed's September meeting and reports on retail sales and consumer sentiment due this week, for more insights into policymakers' view of where inflation stands and the outlook for the future path of interest rates.

In its report, latest World Economic Outlook Report, the IMF has lowered the global growth projection for next year and warned that the world economy is set to witness more pain next year.

The global lender cut the growth projection for next year to 2.7% from 3.3%, while it retained the outlook for this year at 3.2% after a 6% expansion in 2021.

"This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic and reflects significant slowdowns for the largest economies," IMF said in the foreword to the latest World Economic Outlook report, released Tuesday.

Roughly a third of the world economy faces two consecutive quarters of negative growth, the lender said. "In short, the worst is yet to come and, for many people, 2023 will feel like a recession."