US stocks rally during early trade, recover overnight late reversal

Major US equity indices climbed higher during the opening hour of trade on Tuesday and recovered a major part of overnight late reversal slide.

Bloomberg news reported that the Trump administration was prepared to impose tariffs on all Chinese imports if there is no progress made before November summit and triggered a fresh round of late selloff in the US equities on Monday.

However, optimistic comments by the US President Donald Trump, predicting a “great deal” with China, eased fears of any further escalation of a trade war between the world’s two largest economies and remained supportive of the early positive momentum.

Tariffs, along with the recent surge in the US bond yields have been among the key factors adding worries about slowing corporate growth, and fears of faltering global growth and driving flow away from equities.  

Hence, market focus will remain on the incoming earnings report, which along with any fresh trade-related news/developments might continue to infuse volatility and lead to erratic trading action in the near-term.

At the time of writing this report, the Dow Jones Industrial Average was up around 140-points to 24,580 and the broader S&P 500 Index climbed nearly 18-points to 2,659. Meanwhile, tech-heavy Nasdaq Composite Index added over 30-points and inched back closer to the 7,100 mark.