Stocks climbed moderately on Tuesday, with the Nasdaq bouncing back from its worst three-day hit since 2011, as investors sought recently hammered social media and Internet shares and braced for quarterly earnings.
The Dow Jones Industrial Average closed unofficially 10 points ahead, while the S&P 500 added 6 points and the Nasdaq was 33 points higher.
"After a few days of some pretty sharp selling my guess is you have some people coming in and testing these levels. You had a pretty severe correction in pockets of the technology sector and biotech, probably due to the run up that has occurred, so we have some good, old-fashioned profit taking, and you have some good, old-fashioned nervousness about what first-quarter earnings are going to look like," said Matthew Kaufler, portfolio manager at Federated Investors.
Momentum stocks rose, including Google, which added 3 percent, and Facebook and Amazon.com which were both 2 percent higher.
The International Monetary Fund meanwhile forecast the global recovery would gain traction this year as output in wealthier nations picks up, but warned of rising risks in emerging economies.
The dollar declined against the currencies of major U.S. trading partners and the 10-year Treasury yield fell 3 basis point to 2.677 percent. Crude-oil futures for May delivery added $2.12, or 2 percent, to $102.56 a barrel; gold futures added $10.80 to $1,308.10 an ounce.
The unofficial start of the quarterly earnings season began after Tuesday's close, with aluminum producer Alcoa slated to release earnings. Gigamon shares fell 33 percent after the maker of communications devices cut its first-quarter revenue outlook.
First published April 8 2014, 6:56 AM