Wall Street kicked off a busy week of corporate earnings with a broad recovery on Monday, the latest turnaround in a market that has been swinging precariously between gains and losses in recent weeks.
The S&P 500 rose 2.6 percent, more than regaining the ground it lost in Friday’s selling. The Dow Jones Industrial Average rose 1.9 percent and the Nasdaq Composite added 3.4 percent. The Australian stock market is set to rise, with futures at 6.59AM ET pointing to a jump of 61 points, or 0.9 percent, at the open. On Monday, ASX was down 1.4 percent.
Wall Street rallied higher at the start of the week. attributed to him:NYSE
Almost all stocks in the benchmark S&P 500 rose, technology and telecoms companies were among the biggest gainers. Apple shares rose 2.9 percent, and Google’s parent company shares rose 3.7 percent.
Bond yields have slipped from multi-year highs, easing some pressure on stocks. The yield on the 10-year Treasury, which affects mortgage rates, was stable at 4.02 percent. The yield on the two-year Treasury, which tends to track expectations for the Federal Reserve’s future action, fell to 4.46 percent from 4.50 percent late Friday.
British government bonds rose after the news that the country’s new treasury chief is abandoning all the series of unfunded tax cuts that have rattled the markets. Markets in Europe closed broadly higher and most markets in Asia gained. The price of US crude oil has fallen.
The broader market is exiting a very volatile week that closed with most major indicators in the red. Including Monday, the S&P 500 has posted gains or losses of 2 percent or more six times so far this month.
“These are the things you see in a bear market,” said Tom Martin, senior portfolio manager at Global Investments. “Obviously the markets are not well-balanced because you have such extreme volatility in stocks and bonds.”
The S&P 500 Index rose 94.88 points to 3,677.95. The Dow Jones rose 550.99 points to 30,185.82, while the Nasdaq added 354.41 points to 10,675.80.
Originally published at Melbourne News Vine
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