What is behind US stocks’ recovery on Tuesday?

The major US benchmarks are trading up as investors buy ahead of new year holidays. The major US Indexes are moving higher on Tuesday as stocks struggle to hold their gains ahead of the Christmas. However, the limited rebound is considered as a sign that New Year’s Rally is imminent.

Equities usually surge in the last five trading days of December and the first two days of the new year. During the US session, the Dow Jones Industrial Average was up 120 points, or 0.37%, while the S&P 500 and the Nasdaq Composite were both 0.25% and 0.23% higher, respectively.

US stocks are trying to snap a four-day losing streak. The Bank of Japan was the last key central bank domino to fall, and that’s sending yields higher, which will make it hard for investors to pile back into equities given the economy is clearly recession bound,” he finished.

Retail stocks including Nike, Macy’s, Abercrombie, and Best Buy are all in red territory on Tuesday with Best Buy taking the steepest fall at roughly 0.88% beneath the redline.

Travel stocks are higher on Tuesday as holiday travel picks up with shares of Southwest, United, and Delta Air Lines all flying above the redline on Tuesday with only American Airlines trading in negative territory at a 0.16% loss.