Calm returns to Wall Street; stocks bounce back after their worst drop in nearly 2 years

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NEW YORK—A rising tide swept stocks higher, and calm returned to Wall Street after Japan’s market soared earlier Tuesday to claw back much of the losses from its worst day since 1987. The S&P 500 climbed 1 percent to break a brutal three-day losing streak.

NEW YORK—A rising tide swept stocks higher, and calm returned to Wall Street after Japan’s market soared earlier Tuesday to claw back much of the losses from its worst day since 1987.

Stronger-than-expected profit reports from several big US companies helped drive the market. Kenvue, the company behind Tylenol and Band-Aids, jumped 14.7 percent after reporting stronger profit than expected thanks in part to higher prices for its products. Uber rolled 10.9 percent higher after easily topping profit forecasts for the latest quarter.

That scrambled trades where investors had borrowed Japanese yen at low cost and invested the cash elsewhere around the world. The resulting exits from those investments may have helped accelerate the declines for markets around the world. The stock market’s “dip is not a blip,” he warned in a report, and called it “too soon to jump back in.”

The S&P 500 has romped to dozens of all-time highs this year and is still up nearly 10 percent so far in 2024, in part due to frenzy around artificial intelligence technology. Critics have been saying that euphoria has sent stock prices too high in many cases.

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