US stocks rally as Robinhood surpasses IPO price

US stocks rally as Robinhood surpasses IPO price

The Dow Jones Industrial Average led the bulls in Tuesday’s trading session, recouping Monday’s losses. While technology companies trailed the other indices, they maintained robust gains in afternoon trade.

Tuesday’s stock market movement was similar to Monday’s which saw a late-day drop drive the Dow and S&P 500 into the red while the tech-heavy Nasdaq hung on to a modest gain.

One major outperformer was retail stockbroker, Robinhood, which finished nearly 24% higher and considerably above its initial public offering price from last week.

Tuesday saw 8,988 purchase orders and 7,931 sell orders for Robinhood on fidelity. According to Swaggy Stocks, which collects the postings, the ticker is also a top discussed stock on Reddit’s WallStreetBets.

Meanwhile, the second-quarter earnings season continues, with Under Armour shares jumping 7.5% after the firm surpassed top and bottom-line forecasts. Clorox’s shares, on the other hand, dropped more than 9% following a dismal report.

After dropping to a near five-month low on Monday, the 10-year Treasury yield steadied on Tuesday. Stocks climbed as yields recovered from their lunchtime drop to remain steady.

Quick market analysis

The Nasdaq gained 0.5%, while the S&P 500 gained 0.8%. On Tuesday, the Dow Jones industrials rose 0.8% while the small-cap Russell 2000 index rose roughly 0.4%. Volume on the Nasdaq and the NYSE was greater than it was on Monday.

The sectors that led the market on Tuesday were energy, industrials and transportation. Meanwhile, equities in technology, the internet, and consumer discretionary declined. Several reopening stocks were also down.

Restaurants and airlines decreased around 0.3%, travel booking and leisure services fell 1.7%. Worse, the hotel, casino, and resort industries were all down more than 2%.

Nike (NKE) shares reached a fresh high of 171.50 early Tuesday, gaining almost 1.5%.

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