Stocks are recovering from the 2022 low, the S&P 500 is on track for its best 2-day gain in 2 years

Stocks rose Tuesday as Wall Street built on a strong rally seen in the previous session and bond yields continued to fall.

The Dow Jones Industrial Average rose 761 points, or 2.6%. The S&P 500 rose 2.9% and the Nasdaq Composite rose 3.1%.

All major averages are now about 5% above their yearly lows. Tuesday’s gains also pushed the S&P 500 up 5.3% for the week and on course for its biggest two-day rally since March 2020.

Markets got off to a strong start to the month, providing some respite from the rapid declines seen in September and the previous quarter. On Monday, the Dow jumped about 765 points for the best day since June 24. The S&P 500 was up about 2.6% on its biggest day since July 27, and the Nasdaq was up 2.3%.

“After the S&P 500 fell more than 9% in September and extended its year-to-date decline to nearly 25% as of Friday’s close, we believe the S&P 500 was oversold,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “In addition, some of last week’s selling pressure may have been driven by the quarter-end rebalancing, which has now ended.”

“With sentiment towards equities already very weak, expect periodic rallies,” he added. “But markets are likely to remain volatile in the short-term, mainly driven by expectations around inflation and interest rates.”

Sentiment has improved over the past two sessions as government bond yields hit more than 10-year highs. The 10-year Treasury yield traded at about 3.617% on Tuesday, down more than 4% at one point last week. Earlier in the day it broke below 3.6%.

Sentiment on Tuesday was also boosted as shares of Credit Suisse traded 4% higher. Earlier in the week there were concerns about the bank’s financial health. The bank told CNBC that it will provide updates on its strategy alongside the third-quarter results.

Stocks extended their rise after job vacancy data pointed to a slowdown in the labor market, prompting some traders to bet the Fed could end its aggressive tightening campaign sooner than expected.