Trader John Panin, left, and specialist Jay Woods work on the floor of the New York Stock Exchange Tuesday, Jan. 28, 2014. Stocks are higher in early trading on Wall Street as the stock market turns positive after three days of losses. (Richard Drew / AP)
Investors’ jitters over emerging markets faded on Tuesday and U.S. stocks rose for the first time in four days.
Global stock markets stabilized after three turbulent days when investors grew worried about growth in China and other emerging markets. The sell-off began last Thursday, when a survey for January showed that Chinese manufacturing was set to contract, dragging down stocks in Asia, Europe and the U.S. The slide continued on Friday as currencies in countries including Argentina and Turkey slumped. On Monday, Asian markets slumped, although the selling on Wall Street eased.
By Tuesday, though, global markets regained their calm. In the U.S., earnings gains from big companies, including Pfizer, Comcast and D.R. Horton helped lift stock indexes.
One area of disappointment, though, was Apple, whose weak revenue forecast pushed its stock to the biggest one-day loss in a year.
The stock market has slumped in January after a banner year in 2013 that sent the market up to record levels. Many investors believe that rally has yet to run its course.
“I tend to interpret the choppiness and downward movement in share prices so far this year as just a little bit of a stumble off the starting block,” said John Carey, a portfolio manager at Pioneer Investments. “This is a temporary situation.”
The Standard & Poor’s 500 index rose 10.94 points, or 0.6 percent, to 1,792.50. The Dow Jones industrial average gained 90.68 points, or 0.6 percent, to 15,928.56. The Nasdaq composite climbed 14.35 points, or 0.4 percent, to 4,097.96.
Nine of the 10 sectors that make up the S&P 500 index rose. Health care and financial stocks were the two best-performing sectors. The technology sector was the only one to fall.
Financial markets in emerging economies stabilized on Tuesday.
The Turkish lira edged higher against the dollar after that nation’s central bank signaled that it was preparing to reverse course and raise interest rates to fight inflation.
The currency’s decline was at the center of an emerging-market slump that prompted the global sell-off in stocks last week.