DOW - Rebound?

Dow

11,176.76

+322.11

+2.97%

By: JeeYeon Park

Stocks closed near session highs Tuesday, with the Dow posting its biggest gain in almost two weeks, despite a 5.8-magnitude earthquake in Virginia that shook parts of the U.S. East Coast and after investors shrugged off a handful of disappointing economic news.

The S&P 500 jumped 38.53 points, or 3.43 percent, to end at 1,162.35. The Nasdaq spiked 100.68 points, or 4.29 percent, to close at 2,446.06.


The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled near 36.

A magnitude 5.8 earthquake struck the U.S. East Coast from Virginia to at least Boston, according to the U.S. Geological Survey. The Pentagon and U.S. Capitol Building in Washington were evacuated, as were courthouses in New York City.


"Our building shook pretty well for about a minute, but then it stopped," said Peter Tuz, president of Chase Investment Counsel, based in Charlottesville, Va. "It is very unusual for this area. Mineral, Va., the epicenter, is about 30 miles to our east."

Stocks were higher throughout the session, despite a handful of weaker-than-expected economic reports and as investors awaited a speech by Fed Chairman Bernanke later this week.


“This is a dead-cat bounce…we were in an oversold position and investors are trying to find any single positive data to create an opportunity,” said Kenny Polcari, managing director of ICAP Equities, pointing to better-than-expected economic news from Germany and China.

At the end of the week, all eyes will be on Federal Reserve chairman Ben Bernanke as he makes his widely-anticipated speech at the Fed's annual Jackson Hole, Wyoming symposium. Investors will watch for any signs of a possible round of asset purchases (also known as quantitative easing) which will likely help bolster the stock market.