U.S. stocks closed higher on Monday, as gains in banks and a rally in the shares of market-leading technology companies spurred a broad-based market rally after Wall Street’s longest streak of weekly declines since the dotcom collapse more than 20 years ago.
The S&P 500 index closed up 1.86% at 3,973.75 points. The Dow Jones rose 1.98% to 31,880.24 points. The Nasdaq Composite technology index rose 1.59% to 11,535.28 points.
The three major US stock indexes advanced between 1.6% and 2.0%. The biggest boost came from the rally in mega-cap tech names Apple Inc and Microsoft Corp.
Banks, which are more sensitive to interest rates, rose 5.1% after the largest U.S. lender, JPMorgan Chase & Co, raised its net interest margin outlook for 2022. [nL2N2XF16R]
JPMorgan Chase shares jumped 6.2%.
“It looks like a relief rally rather than a fundamental shift in investor sentiment,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. “Investors as a whole feel there is more to come and they are probably right in the short term.”
On Friday, the S&P 500 closed 18.7% below the record closing reached on Jan. 3. If the index ended 20% or more below this record, it would confirm entering a bear market since then.
All 11 major sectors of the S&P 500 ended trading in positive territory. The financial index obtained the highest percentage gain and increased by 3.2%.
Source: CNN Brasil
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