The S&P 500 rose slightly on Tuesday, recovering some of their sharp losses from the previous session, as traders turned their focus to two key elections in Georgia.
The Dow Jones Industrials regained 51.82 points to begin Tuesday afternoon at 30,275.77.
The S&P 500 gained 12.67 points to 3,712.82.
The NASDAQ jumped 67 points to 12,765.45.
Energy stocks advanced about 3% after the Organization of the Petroleum Exporting Countries and Russia reportedly reached a deal on an oil production plan. Chevron traded higher by more than 1%. The news also sent U.S. oil futures up about 5% to break above $50 per barrel for the first time since February.
Georgia runoff elections will determine whether Republicans can hold on to control in the Senate. Many fear that increased tax rates and more progressive policies could weigh on the market if Democrats gain control of the Senate.
However, such an outcome could create an opportunity for a bigger and faster spending package.
Stocks also got a boost after the release of better-than-expected U.S. manufacturing data. The Institute for Supply Management said its manufacturing index rose to 60.7 in December from 57.5 in November. Economists polled by Dow Jones expected the index to come in at 57.
Meanwhile, rising COVID-19 cases globally and new lockdown restrictions continued to keep investors on edge. More than 85 million COVID-19 cases have been confirmed globally, including 20.8 million in the U.S., according to data from Johns Hopkins University.
On Monday, England imposed a third coronavirus lockdown as the region grapples with a more transmissible variant of COVID-19. New York State has confirmed its first case of the new strain, Gov. Andrew Cuomo said Monday.
Prices for the 10-Year Treasury were slid, boosting yields to 0.96% from Monday’s 0.91%. Treasury prices and yields move in opposite directions.
Oil prices acquired $1.91 to $49.53 U.S. a barrel.
Gold prices hiked $4.60 to $1,951.20 U.S. an ounce.