S&P 500 rebounds, Nasdaq rallies 1.75%

By Ovunc Kutlu

ANKARA (AA) - The S&P 500 rebounded strongly from a 2% loss to close with gains and the Nasdaq rallied 1.75% as US stocks ended mixed Tuesday.

After falling to 3,740 points during the session, the S&P 500 finished the first trading day of the week at 3,831, up 6 points, or 0.16%.

The tech-heavy Nasdaq jumped 194 points, or 1.75%, to close at 11,322.

The Dow was down 130 points, or 0.42%, to 30,967.

The New York Stock Exchange was closed Monday in observance of Independence Day.

The VIX volatility index, also known as the fear index, rose 0.4% to 27.65. The 10-year US Treasury yield, on the other hand, fell 2.9% to 2.820%.

The dollar index was up 1.3% to 106.49 by the final bell, after climbing to 106.79 at 12.20 p.m. EDT (1620GMT) -- its highest since Dec. 2, 2002.

Precious metals fell sharply with gold losing 2.3% to $1,766 and silver shedding 3.7% to $19.24.

Crude oil prices plummeted more than 8% as the rising value of the dollar, recession fears and worries about a global economic slowdown put downward pressure on the oil demand outlook.

Global oil benchmark Brent crude was trading at $103.09 for a 9.2% loss, while US benchmark West Texas Intermediate (WTI) was at $99.70 -- down 8.1%.

WTI sank to $98.44 per barrel at 11.40 a.m. EDT (1540GMT), while Brent crude fell to $102.12. The benchmarks saw their lowest level since May 11.