US close: Stocks record some gains following days of heavy losses
US stocks recorded some gains on Tuesday following losses in the previous session.
At the close, the Dow Jones Industrial Average was 1.77% higher at 24,874.64, while the S&P 500 closed 1.57% stronger at 2,682.63 and the Nasdaq Composite closed 1.58% firmer at 7,161.65.
US stocks climbed their way back into the green on Tuesday after the Dow Jones ended the previous session with a triple-digit point loss after an ugly reversal thanks, in part, to comments made by Donald Trump.
Trade relations between the US and China were back in the spotlight again after Donald Trump said he expects a "great deal" with China, even as he reiterated a threat of more tariffs - on another $257bn worth of goods - if a deal isn't agreed.
Oanda analyst Craig Erlam said: "The levels of volatility we're seeing right now isn't going to give anyone confidence that we're not headed for further declines in the markets. We did see a late rally in the US session on Monday which may suggest pessimism isn't quite as rife as it's been in recent weeks although it's difficult to read too much into any rallies at the moment."
"Any ray of hope seems to be quickly dashed by the market taking another dive lower, this particular correction may well have longer to run."
In corporate news, Under Armour surged 27.71% after the sportswear company's third-quarter earnings beat analysts' expectations.
Coca-Cola shares were up 2.52% at the close after its third-quarter sales surpassed forecasts.
Chesapeake Energy closed 12.10% lower after agreeing to buy oil and gas company WildHorse - which has operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas - in a deal valued at around $3.98bn. Under the terms of the deal, WildHorse shareholders will receive either 5.989 Chesapeake shares or a combination of 5.336 shares and $3 in cash, for each of their shares.
General Electric tumbled 8.29% after revealing a major restructuring programme and slashed its quarterly dividend from 12 cents to 1 cent after incurring a $22bn write-down.
Pfizer lost 0.79% after its mixed quarterly results led the pharmaceutical group to narrow its full-year forecast.
Mastercard slipped 1.73% after the release of its third-quarter numbers and Cummins shares picked up 2.30% after posting a 53% increase in third-quarter profit.
Facebook picked up 2.91% after it revealed slow user and sales growth had been offset by improved profits.
On the data front, the US housing market lost further momentum in August, as the year-on-year rate of house price growth fell below 6% for the first time in a year.
According to the S&P CoreLogic Case-Shiller National Home Price Index, nationally prices rose 5.8% in August, down from the 6% year-on-year increase reported in July.
The 10-City Composite saw an annual increase of 5.1%, down from 5.5% in July, and the 20-City a 5.5% gain, which was lower than July’s 5.9% growth.
America's housing market is adjusting to low inventories and rising building costs, as well as an increase in the cost of borrowing. The Federal Reserve has upped interest rates eight times since 2015, to the current range of 2%-2.25%, and most economists have the next rise pencilled in for as soon as December 2018.