NEW YORK: US stocks finished solidly higher Monday following an upbeat session free of the jolts of volatility that plagued equities for more than a week.
The Dow Jones Industrial Average rose 1.7 percent to close at 24,601.27.
The broad-based S&P 500 gained 1.4 percent to end the day at 2,656.00, while the tech-rich Nasdaq Composite Index advanced 1.6 percent to 6,981.96.
US stocks have been under pressure since a strong jobs report February 2 sparked fears the Federal Reserve will accelerate the pace of interest rate hikes to stave off inflation.
Those worries have been amplified by increasing Treasury bond yields. Higher interest rates could threaten US economic growth and prod some investors to shift funds away from stocks and into bonds.
But after a pullback briefly sent the Dow and S&P 500 into correction territory last week, retreating more than 10 percent from their peak levels, investors Monday appeared to be trying to turn the page. US stocks were in positive territory the entire session.
“The market is returning to more fundamental considerations,” said William Lynch, director of investments at Hinsdale Associates. “Business results are good.”
Still, analysts will be watching this week’s data to see if Monday’s calm is a prelude to a more lasting period of stability or just a temporary reprieve. Key reports this week include data on consumer price inflation and retail sales.
Dow companies with big gains included Apple, with a 4.0 percent gain, Boeing, up 3.3 percent and Dow DuPont, up 3.4 percent.
Petroleum-linked shares rose amid higher oil prices, with Halliburton winning 2.6 percent, Schlumberger 2.5 percent and Apache 2.4 percent.
Information technology company CSRA shot up 31.1 percent after agreeing to be acquired by weapons maker General Dynamics for $9.6 billion. General Dynamics dropped 1.1 percent.
Source: Brecorder.com
