Wall Street showed signs of holding up during Tuesday trading hours following sharp falls in in the British pound and global stocks. Investors today rushed to pick up stocks after Britain’s decision leaving the European Union which resulted a sell-off in two business days.
Banks were among the most attractive stocks for investors. Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), Citigroup (NYSE: C) and JPMorgan (NYSE: JPM) were all up more than 2.5 percent.
The pound rose 0.8% against the dollar to $1.332, though it’s still at its low in nearly three decades. The Stoxx Europe 600 rose 2.4%. It was down nearly 11% over the two trading days. Financial sector led the gains after two days of dramatic losses.
Gold fell 0.9% to $1313 an ounce. Global equities experienced a free fall on Friday, evaporating more than $2 trillion in market capitalization, as assets poured to safe havens such as gold and the Japanese yen.
Yield on the 10-year Treasury note rose to 1.477% as prices fell.
Nonetheless, there are still volatilities on the uncertainties over when and on what terms Britain will exit the EU. High volatility would be expected in the next several weeks.
“Global markets are extremely oversold and that’s helping fuel what for now is best classified as a modest relief rally,” Paul Hickey, co-founder of Bespoke Investment Group, told USA TODAY.