Wall Street drops sharply one day after giant rally

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USA stocks moved broadly higher in morning trading Monday despite losing some momentum after a strong rally earlier in the day.

US stocks closed sharply lower on Tuesday, erasing earlier gains, as a decline in the broader tech sector brought the major averages down. That announcement followed a news report saying USA officials submitted a list of requests that China open up its markets.

The Standard & Poor's 500 index rose 43 points, or 1.7 percent, to 2,631 as of 10:07 a.m. The blue chip Dow Jones recovered the loses from last week and ended the Wall Street trading session with increase of 669 points (2.84%).

The S&P is up 65 points or 2.51%. (NASDAQ: KOOL) were down 18 percent to $2.19 after the company reported a registered direct offering to sell 610,000 shares at $2.27 per share. MKM technical analyst Jonathan Krinsky notes that the percentage of Russell 3000 stocks trading above their 200-day moving average-a sign of a long-term uptrend-dropped below 60% on February 5, and since then has stayed there on all but a small number of days.

Wall Street surged at the open as fears over the China/US trade war seem to have calmed down. The Nasdaq climbed 84 points, or 1.2 percent, to 7,076. It dropped by more than 400 points Thursday and Friday after President Donald Trump signed an order to impose a tariff on Chinese goods. On Friday, Beijing released a $3 billion list of USA goods targeted for possible retaliation over an earlier US tariff hike on steel and aluminum imports.

The "trade tiff" failed to dent the strong global economic outlook, Stovall said.

"There's too much at stake", says Joe Quinlan, chief market strategist at U.S. Trust.

A Treasury Department spokesperson declined to confirm the report. It said American market-opening requests as a possible condition of a settlement covered the auto, finance and semiconductor industries.

PHARMA DEAL: U.S. -listed shares of British drugmaker GlaxoSmithKline rose 2.6 percent after the company agreed to buy out its Swiss partner Novartis in their consumer health joint venture for $13 billion in cash. Banks also posted solid gains as bond yields rose. Bank of America added 77 cents, or 2.7 per cent, to $29.95.

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Lowe's climbed 6.6% after the home-improvement retailer said chairman and CEO Robert Niblock is retiring. The stock gained $4.76 to $88.53.

TWEET THIS: Shares in Twitter slumped 11.6 percent after Citron Research said it is shorting the social media portal, citing Twitter's reliance on licensing its users' data.

TECH WOES: Technology companies, which were big decliners last week and led Monday's market rally, racked up more losses Tuesday.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.82 percent.

ENERGY: Benchmark U.S. crude added 25 cents to $65.80 a barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, used to price worldwide oils, gained 28 cents to $69.80. The American WTI oil ended the stock exchange session at a price of 65.50 Dollars per barrel, dropping by 0.58%.

CURRENCIES: The dollar rose to 105.64 yen from 105.41 yen late Monday. The euro fell to $1.2402 from $1.2455. Seoul's Kospi gained 0.8 percent.

He outlines four main reasons investors should worry, but if Monday's futures are any indication, that has yet to play out. In the two days following the hike in interest rates, as well as firing off another trade tariffs salvo, Mr Trump replaced his national security adviser with a notorious foreign policy hawk, whose reputation is for confrontation rather than for solving geopolitical situations diplomatically, causing oil prices to shoot up as a result.

The British pound jumped 0.7 percent to $1.4232, the strongest since February 1. The week ended with further steep losses in equity markets following those seen in February, making investors question whether such falls are merely a correction or something more fundamental to be anxious about.