Wall Street opens sharply higher, DJIA gains more than 1.5%

• CBOE Volatility Index is down nearly 10% on Tuesday.
• Healthcare Index adds nearly 2% in the early trade.
• Tesla shares jump nearly 20% to boost Nasdaq Composite.

Wall Street’s main indexes started the day sharply higher following Monday’s recovery as investors seem to be reacting positively to measures taken by Chinese authorities to help the economy preserve its recovery momentum. As of writing, the Dow Jones Industrial Average was up 1.55% on the day while the S&P 500 and the Nasdaq Composite were both adding 1.4% on the day.

Risk-on flows continue to dominate

Reflecting the upbeat market mood, the CBOE Volatility Index, Wall Street’s fear gauge, was down nearly 10%.

Among the 11-major S&P 500 sectors, the Healthcare Index is up 2% to lead the winners. With the exception of the Utilities, Real Estate and the Communication Services indexes, all the other major sectors are rising more than 1% in the early trade.

In the meantime, Tesla shares hit fresh all-time highs near $940 on Tuesday by gaining more than 20%. Massive short squeezes are reportedly driving the upsurge in the carmakers’ shares.