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U.S. stocks rebound after Brexit-related selloff

Xinhua, June 28, 2016 Adjust font size:

U.S. stocks traded higher in the morning session Tuesday, as investors saw an opportunity to buy following two-day sharp selloff after Britain's vote to leave the European Union (EU).

At midday, the Dow Jones Industrial Average gained 121.80 points, or 0.71 percent, to 17,262.04. The S&P 500 rose 16.92 points, or 0.85 percent, to 2,017.46. The Nasdaq Composite Index surged 58.35 points, or 1.27 percent, to 4,652.79.

"The first wave of Brexit selling in equities is over as European markets rebounded more than 2 percent today," said Chris Low, chief economist at FTN Financial, Tuesday.

The Leave camp won Britain's Brexit referendum last week by obtaining nearly 52 percent of ballots, pulling the country out of the 28-nation European Union (EU) after its 43-year membership.

The stunning referendum results sent global markets on a wild descent, and were seen by many economists as a threat to global economic stability.

Markets showed a sign of recovery Tuesday across the globe after a record 3 trillion U.S. dollars in market capitalization was wipe off in the last two trading days.

On the economic front, U.S. real gross domestic product (GDP) increased at an annual rate of 1.1 percent in the first quarter of 2016, higher than the prior estimate of 0.8 percent, according to the third estimate released by the Commerce Department Tuesday.

Meanwhile, the Conference Board Consumer Confidence Index came in at 98.0 in June, up from 92.4 in May.

U.S. stocks closed lower on Monday, extending Friday's decline. The S&P 500 dropped more than 2 percent in the morning session, below the psychologically key 2,000 level for the first time since March. Endite