Wall Street recovered some of the loses from the previous week

Wall Street recovered some of the loses from the previous week

Last week was Wall Street's worst in about two years, but USA stocks managed to recover and close in the green for a second straight day.

At 2:45 p.m. ET, the Dow Jones Industrial Average was up 0.1 percent at 24,625.71 points, while the S&P 500 had gained 3.7 points to 2,660.54.

The broad-based S&P 500 was up 1.3 per cent to 2,654.15, and the tech-rich Nasdaq Composite Index also advanced 1.3 per cent to 6,965.55. The Nasdaq composite climbed 98 points, or 1.4 per cent, to 6,973. Last week, the Dow and S&P 500 declined about 5.2% each, as the Dow posted two 1,000-point drops, while the Nasdaq fell 5.1%. Fears of more aggressive interest rate hikes were one of the triggers of last week's stock market sell-off.

Most analysts believed that the recent pullback was not linked to economic fundamentals.

"This looks like a corrective phase rather than the start of a bear market", said Katie Stockton, founder of Fairlead Strategies.

However, financial service company Societe Generale remains cautious for 2018 as extreme positioning, tapering of central bank liquidity and underestimated risks of inflation repricing may continue to exert pressure on risk assets. The benchmark 10-year USA note yield rose to a four-year high on Monday before trading at 2.858 percent.

Overseas, markets were also generally rising as well.

The U.S. consumer-price index will be released January and may reveal the extent the tighter jobs market is creating inflation.

USA investors have been torn between enthusiasm for the massive tax cut passed by Congress past year that could provide a huge stimulus to an economy already at full employment and growing fears that interest rates will jump as the federal government borrows massive amounts to cover its growing deficits.

Investor attention is focused on the question of inflation. On Monday General Motors picked up 57 cents, or 1.4 per cent, to $42.04 and Netflix climbed $5.40, or 2.2 per cent, to $254.87. Natural gas slid 3 cents to $2.55 per 1,000 cubic feet. (NYSE:AMZN) ticked 2.04% higher to close at US$1.414.50 while Apple (NYSE:AAPL) gained 1.0%, closing at US$164.34.

In the foreign exchange markets, the USA dollar fell against the euro after its best week against the single currency for nearly 15 months.

Oil futures dipped just below US$59 per barrel. The euro rose to $1.23 from $1.2231.

The gold prices rose because of the depreciation of the dollar. Silver jumped 43 cents, or 2.7 per cent, to $16.57 an ounce.

Hong Kong's Hang Seng lost 0.2 per cent and Seoul's Kospi rose 0.9 per cent. Markets in Japan were closed for a holiday.

OVERSEAS: Germany's DAX jumped 1.4 per cent while the CAC 40 in France and the British FTSE 100 both advanced 1.2 per cent.