NEW YORK (AP) — Stocks rose Tuesday after investors tried to recover some of the big losses that piled up in recent weeks following a string of disappointing economic reports.
The jump in stocks came after investors looked past a report that growth in services businesses slowed last month. The Institute for Supply Management, a trade group of purchasing executives, said its index of services companies fell to 53.8 last month from 55.4 in May.
Economic reports have routinely fallen short of economists’ forecasts in recent months. That has investors worried that the growth is not coming as quickly as expected and any expansion will be slow for a prolonged period.
Overseas markets rose as investors found stock prices more reasonable after the recent sell-off and Australia’s central bank provided a positive forecast for the country’s economy.
Australia’s economy is heavily reliant on exporting raw materials, so growth there has helped the industry. Energy and material stocks rose in early trading.
In midmorning trading, the Dow Jones industrial average rose 152.01, or 1.6 percent, to 9,838.49. The broader Standard & Poor’s 500 index rose 18.17, or 1.8 percent, 1,040.75, and the Nasdaq composite index rose 42.23, or 2 percent, to 2,134.02.