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Overnight Markets: Dow erases 500-point decline in late-day reversal

Overnight Markets: Dow erases 500-point decline in late-day reversal

Wall Street staged a late-day comeback on Monday to close higher as semiconductor shares drove the tech-heavy Nasdaq higher amid renewed confidence in the strength of the US economy.

The S&P 500 added 0.2% to end around 2,638. The Dow Jones Industrial Average advanced 34 points, or 0.1%, to around 24,423, erasing a 507-point drop. The Nasdaq Composite gained 0.7% to around 7,021.

Stocks fell earlier in the session after UK Prime Minister Theresa May announced the delay of a key Brexit vote in the country's parliament.

Meanwhile, the spread between the short-term 2-year Treasury note yield and its 10-year counterpart further narrowed, potentially signaling an economic slowdown is ahead.

Worries over softening global growth and simmering US-China trade tensions also weighed on investor sentiment.

However, comments from influential banks such as JP Morgan and Goldman Sachs that fears about US economic growth are overblown neutralised some of the worst jitters.

In company news, Qualcomm shares jumped after a Chinese court ordered Apple Inc. to stop selling older iPhone models in China for infringing two patents held by the chip manufacturer. Still, Apple shares ended slightly higher.

Facebook rose 3.2% while Amazon, Netflix and Alphabet all gained more than 0.6%. Apple, meanwhile, erased a more than 2% pull back to close 0.65% higher.

Shares of Tesla Inc. added 2% after chief executive Elon Musk appeared on “60 Minutes,” defending himself and the company from what he referred to as “relentless criticism.”

Axovant Sciences Ltd. plunged 28% after the drugmaker announced a trial of a treatment for REM sleep behavior disorder wasn’t successful.

Aurora Cannabis Inc. slid 0.4% after it said that it has entered a letter of intent to buy Mexico’s Farmacias Magistrales SA in a stock deal.

Shares of Linde Plc climbed 2.7% after the multinational chemical company announced a $1 billion share repurchase programme.

In Asia, stocks were mixed on Tuesday in morning trade following a volatile session on Wall Street which saw the Dow recover from a 507-point drop.

The mainland Chinese markets saw gains in early trade. The Shanghai composite rose 0.19% while the Shenzhen composite advanced 0.603%. Hong Kong's Hang Seng index was largely flat.

In Japan, the Nikkei 225 fell 0.36% while the Topix index declined by 0.88%. Meanwhile, South Korea's Kospi rose 0.05% with shares of LG Electronics higher by 2%. Australia's ASX 200 rose 0.35% in afternoon trade.

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