Markets are roaring higher
(Investing.com)
US markets are rebounding alongside European stocks and the pound in early trading on Tuesday.
Markets are rising after a few ugly days following the Brexit vote last week, which erased the gains US stocks had made this year.
Near 2:58 p.m. ET, the Dow is up 228 points (1.33%), the S&P 500 is up 31 points (1.57%) and the Nasdaq is up 92 points (2.01%).
The Euro Stoxx 50 gained 2.09%, while the FTSE 100 closed up 2.64%.
Last Thursday, Britain voted to leave the European Union. The S&P 500 is still down about 4% from the previous day's close.
It's still too soon to realize the full implications of Brexit for the UK, although some analysts have forecast a slowdown in the country's growth that would lead to recession.
But for now, it appears investors are bargain hunting, looking for assets that may have been punished too severely in the last few days. That's "as opposed to [the] emergence of genuine support as markets adjust to a new normal and the prospect of the UK outside the EU," said Mike van Dulken of Accendo Markets.
The pound, which lost almost 4% on Monday in addition to the 8% decline Friday, rose nearly 1% against the dollar on Tuesday.
In US economic data:
The third estimate of first-quarter US GDP was revised up to 1.1% from 0.8%, better than expected, although personal consumption was downgraded to 1.5% from 1.9%.
Home prices in 20 major cities rose 0.45% month-over-month and 5.4% year-over-year in April, the S&P/Case-Shiller report showed.
The Conference Board's consumer confidence index jumped to 98 from 92.4, the highest level of this year.
The Richmond Fed's manufacturing index fell to -7 from -1 in June.
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