US stocks surge after long weekend

New York, Sep 9 (IANS) The US stocks soared on Tuesday after a long weekend as investors bought the dip after last week’s rout.

The Dow Jones Industrial Average jumped 390.30 points, or 2.42 percent, to 16,492.68, reports Xinhua.

The S&P 500 gained 48.19 points, or 2.51 percent, to 1,969.41. The Nasdaq Composite Index spiked 128.01 points, or 2.73 percent, to 4,811.93.

The US stocks witnessed sharp losses the previous week, with the main indexes notching their second-worst weekly decline in 2015.

Some analysts said investors were in a buying mood again after the sell-off, as the stabilization in global stock markets soothed anxious investors.

The US traders were cheered by gains in China’s stock market Tuesday. Chinese shares rebounded after encouraging news about introduction of an index circuit breaker system and a dividend tax break.

The benchmark Shanghai Composite Index ended at 3,170.45 points, up 2.92 percent.

European equities also increased broadly Tuesday, with British benchmark FTSE 100 Index rising 1.18 percent, as the euro area’s gross domestic product was revised up slightly.

Meanwhile, Wall Street remained focused on the Federal Reserve ahead of its key policy meeting next week, when the U.S. central bank could raise interest rates for the first time in more than nine years.

With no major economic data due out Tuesday, investors were still sifting through the key jobs report released Friday.

The Labour Department reported that total non-farm payroll employment added 173,000 in August, well below market consensus of 223,000.

The unemployment rate, however, inched down to 5.1 percent, beating market estimates of 5.2 percent and logging the lowest level in seven years.

The US markets were closed on Monday for the Labour Day holiday.

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