(RTTNews) – Following the extreme volatility seen in recent sessions, stocks showed strong upward movement during Monday’s trading. Major averages advanced early in the session and managed to remain firmly positive throughout the day.
The major averages held onto their strong gains heading into the close. The Dow Jones jumped 618.34 points or 2% to 31,880.24, the Nasdaq jumped 180.66 points or 1.6% to 11,535.27 and the S&P 500 jumped 72.39 points or 1.9% to 3,973.75.
Wall Street’s strength came as traders continued to recover stocks to reduced levels, extending the rally seen at the end of last Friday’s trading session.
The S&P 500 climbed well to its worst levels to end the day roughly flat after falling more than 20% from January’s closing high, seen as a signal for a bear market.
Buying interest may also have been generated in reaction to news that the Shanghai financial hub has lifted some of its COVID-19 related restrictions and US President Joe Biden has said he is considering lowering tariffs on Chinese products.
“I’m thinking about it. We haven’t imposed any of those tariffs. They were imposed by the last administration and they’re under consideration,” Biden said.
Banking stocks helped lead the rebound on Wall Street, with the KBW banking index climbing 4.1% on the day.
Financial giant JPMorgan Chase (JPM) jumped 6.2% after ending last Friday’s trading at its lowest closing level in more than a year. The rebound comes after JPMorgan said a key performance target could be met this year.
Substantial strength was also visible among oil services stocks, as evidenced by the 4.8% jump in the Philadelphia Oil Services Index. The rally in oil services stocks comes even though the price of crude oil ended the day flat.
Steel stocks also performed strongly on the day, sending the NYSE Arca Steel Index up 2.6%.
Brokerage, telecommunications and natural gas stocks also saw significant strength, advancing along with most other major sectors.
Among individual stocks, shares of VMWare (VMW) rose sharply following reports that the cloud computing company is in advanced talks to be acquired by chipmaker Broadcom (AVGO).
In overseas trading, stock markets in the Asia-Pacific region saw mixed performance in Monday’s trading. Japan’s Nikkei 225 index jumped 1%, while Hong Kong’s Hang Seng index fell 1.2%.
Meanwhile, major European markets all traded higher on the day. While Britain’s FTSE 100 index jumped 1.7%, Germany‘s DAX index and France’s CAC 40 index jumped 1.4% and 1.2%, respectively.
In the bond market, Treasuries fell sharply, losing ground after trending higher in recent sessions. As a result, the yield on the benchmark 10-year note, which moves opposite to its price, climbed 7.2 basis points to 2.859%.
Going forward, Tuesday’s trading could be impacted by the reaction to a report on new home sales as well as remarks by Federal Reserve Chairman Jerome Powell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.