Stocks increased Tuesday as Wall Street managed to recover some of its losses during the last three days of trading. The Dow Jones Industrial average index increased 0.7 percent. The Standard & Poor’s 500 Index was up almost 1 percent. The Nasdaq composite gained 0.8 percent.
The yield on the 10 year US Treasury note increased at 2.59 percent. This was the vital driver of market sentiment in the past several weeks.
Wall Street closed the session lower. The Dow was down 0.9 percent at 14,659.56. The S&P 500 Index declined 19.34 to 1,573.09. The Nasdaq composite fell 1.1 percent.
Markets across the globe were up Tuesday. Britain’s FTSE 100 Index closed up 72.81 points to 6,101.91. Germany’s DAX 30 Index finished up 118.85 points to 7,811.30. France’s CAC ended up 54.19 points to 3,649.82.
Japan’s Nikkei 225 Index closed down 0.7 percent to 12,969. Markets in China were volatile Tuesday as investors were concerned about measures that limit underground lending that would hurt growth in the country’s economy. The Shanghai composite index ended down 0.2 percent after it fell as much as 3.8 percent earlier in the session. The Shanghai composite index dropped more than 5 percent Monday.
Moody’s stated that a sustained credit crunch could hurt Chinese companies, especially the ones in the private sector with weak credit quality. It increases the risk that banks would reduce lending to the companies.
The credit ratings agency said China’s central government finances are still strong but the fast credit growth and liabilities at the local level could place the growth at risk. The concerns regarding China’s credit market added to the existing worries that access to money will tighten in the US.
Benchmark oil for August delivery increased 8 cents to $95.25 a barrel on the New York Mercantile Exchange. The contract went up $1.49 to $95.18 at the close of trading in New York Monday.