U.S. stocks rallied Tuesday after the Federal Reserve said interest rates would stay low through mid-2013.
Shares in the footwear industry also rebounded in trading, with some climbing back near Monday-morning levels.
Of the 30 footwear stocks tracked by Footwear News, 27 ended the day with higher share prices. One firm, Auri Inc., finished flat, while two — LaCrosse Footwear Inc. and Bakers Footwear Group — fell 1.1 percent and 13.6 percent, respectively.
The industry closed an average of 6.1 percent higher, again outperforming the Dow Jones Industrial Average, which climbed 4 percent to cross the 11,000-point mark again. The index had lost 635 points on Monday — the sixth-biggest point drop in its history — to close at a 10-month low.
Monday’s top loser, Crocs Inc., was Tuesday’s biggest gainer, proving the volatility of equity markets as uncertainty continues to characterize investor sentiment.
Crocs gained 12.6 percent to close at $27.72, after slumping 14 percent the day before. Weyco Group Inc. also gained 12.6 percent to $24.82, just shy of its 52-week high of $24.88. Most other footwear stocks gained in the mid-single digits.
Meanwhile, the S&P 500 Index rose 4.7 percent to 1,172.53 points as trading settled, and the Nasdaq Composite rose 5.3 percent to 2,482.52.
Fed officials downgraded their assessment of the U.S. economy for the third time this year, saying in a statement late Tuesday that economic growth so far this year has been “considerably slower than the committee had expected.”
It was also a tumultuous day internationally, with Asian markets trading down as much as 7 percent during the day, and Hong Kong’s Hang Seng Index plunging 5.7 percent.