The wild ride for investors continued on Tuesday.
Stocks surged to their second-biggest gain of the year, more than wiping out a big loss from Friday and leaving the Dow Jones industrial average down just slightly for the month.
The market was rebounding from a steep sell-off last week, when a mixed jobs report left investors uncertain about the outlook for interest rates.
Big moves have become commonplace in financial markets in recent weeks as investors have worried about the health of the Chinese economy and the prospect of a boost in U.S. interest rates. Many slumps have been followed by strong rebounds.
Some strategists believe a sell-off in stocks that began in the middle of August is over, while others say that there may still be more selling.
“There is some value out there, but I’m not fully convinced that the selling pressure is out of the picture,” said Robert Pavlik, chief market strategist at Boston Private Wealth.
The Standard & Poor’s 500 index gained 48.19 points, or 2.5 percent, to 1,969.41. The Dow rose 390.30 points, or 2.4 percent, to 16,492.68. The Nasdaq composite climbed 128.01 points, or 2.7 percent, to 4,811.93 points.
Traders were encouraged by a rebound in China’s stock market despite some disappointing news on its economy.
The country’s exports shrank 5.5 percent last month compared with a year earlier, while imports tumbled 13.8 percent. August’s figures were hit by disruption from a massive explosion at the busy Tianjin port and government-enforced factory shutdowns in the run-up to a huge military parade in Beijing last week. China’s trade has been weak for months, reflecting muted global demand and a domestic slowdown.
Despite the disappointing reports, China’s Shanghai Composite Index jumped 2.9 percent in a rebound from losses earlier in the day. A big slump in the Chinese markets this year has unsettled investors.
The price of oil slipped slightly Tuesday as traders weighed continuing supply concerns against the possibility of rising demand in this country. U.S. crude fell 11 cents to close at $45.94 a barrel in New York. Brent Crude, a benchmark for international oils used by many U.S. refineries, rose $1.89 to close at $49.52 in London, reversing Monday’s steep decline.
