Stocks claw back prior day’s losses, post gains of nearly 2% in bargain-hunting rally as COVID fears wane

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Stocks rallied on Tuesday, with Wall Street recouping most of the previous session’s steep losses, as bargain-hunting momentarily counterbalanced rising COVID-19 infections.

On Monday, major benchmarks suffered their worst declines of 2021, overwhelming quarterly earnings that have almost uniformly reflected a strong rebound. The rising case count driven by the Delta variant — a more communicable form of COVID-19 — pushed the Nasdaq and S&P 500 to their biggest drop in nearly two months, and sent benchmark Treasury yields to their largest decline in over 3 months as investors sought shelter from the uncertainty. The Dow’s point drop was its worst since October 2020.

However, investors reconsidered some of that pessimism in Tuesday’s session, with some analysts pointing out that hospitalizations and deaths haven’t risen as dramatically — and are far below where they were during the worst days of the COVID-19 outbreak. Major indices jumped, with the…

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