US Stocks Hold Firm After Massive Drop in Hong Kong

US stocks rebounded Tuesday as falling oil prices released some of the pressure that had built up on the market.

• The S&P 500 rose 55.19 points, or 1%, to 5,751.15 and clawed back its loss from the day before.
• The Dow Jones Industrial Average rose 126.13 points, or 0.3%, to 42,080.37.
• The Nasdaq composite rose 259.01 points, or 1.4%, to 18,182.92 as Big Tech stocks led the way.

Wall Street held firm even though stock markets around the world sank following scary swings in China, as euphoria about possible stimulus for the world's second-largest economy gave way to disappointment, the AP reports. Stocks in Hong Kong tumbled to their worst day since 2008.

Oil prices gave back some of the big recent gains they made on worries that worsening tensions in the Middle East could ultimately lead to disruptions in the flow of oil. A barrel of Brent crude, the international standard, fell 4.6% to $77.18 for its first loss in a week and a half. A barrel of benchmark US crude, meanwhile, eased 4.6% to $73.57. Oil-and-gas companies gave back some of their big recent gains driven by the jump in crude prices. Chevron fell 1.6% and was one of the main reasons the Dow lagged other indexes.

All of the Big Tech stocks that have collectively come to be called the "Magnificent Seven" rose. Nvidia led the way with a gain of 4% and was the strongest single force lifting the S&P 500. PepsiCo climbed 1.9% after delivering stronger profit for the latest quarter than analysts expected, though its revenue fell short. CEO Ramon Laguarta also said the company now expects a "low single-digit" increase in an important measure of revenue for the year after it had earlier forecast growth of about 4%. US consumers continue to pull back on buying snacks and drinks after years of price increases.

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On Tuesday, China's economic planning agency outlined details of measures aimed at boosting the economy, but it refrained from major spending initiatives. That helped cause the 9.4% drop for the Hang Seng index in Hong Kong. The disappointment in China had worldwide effects, knocking down stocks of companies in Europe, the United States, and elsewhere that do lots of business in and around China. Estee Lauder fell 2.2% and Wynn Resorts lost 3.3%.

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