Shares rose in an auction on Wall Street on Monday after a seven-week decline that nearly halted the bull market that began in March 2020.
The S&P 500 index rose 1.8% as of 15:12 in the east. The Dow Jones Industrial Average rose 588 points, or 1.9%, to 31,850, the Nasdaq – by 1.3%.
Banks have made strong returns along with rising bond yields, which they are counting on to charge higher yields on loans. The 10-year Treasury’s yield rose to 2.86% from 2.77% on Friday at the end. Bank of America grew 6.3%.
Technology stocks have also made some heavy. Apple rose 3.4% and Microsoft 2.7%. Over the past few weeks, this sector has been volatile and has caused many recent major market fluctuations.
VMware rose 20.8% after reports that chipmaker Broadcom is offering to buy a cloud computing company. JPMorgan Chase jumped 6.9% after giving investors an encouraging update on its financial forecasts.
Retailers and some other companies that rely on direct consumer spending have lagged behind the rest of the market. Amazon fell 0.7%. Last week, a number of disappointing earnings reports from key retailers raised concerns that consumers are holding back spending on a wide range of goods when they are squeezed by rising inflation.
Strong concerns about inflation dragged the market and kept major indexes falling. The S&P 500 is still experiencing its longest weekly loss streak since the dot-com bubble burst in 2001. It was close to falling 20% from its peak earlier this year, which would have put the index at the heart of most workers. 401 (k) bear market accounts.
The impact of inflation on consumers and businesses has been a key concern of markets, along with the Federal Reserve’s attempt to stifle that impact by aggressively raising interest rates. Inflation, caused by a large gap in supply and demand, has worsened due to Russia’s invasion of Ukraine and its impact on energy prices.
Supply chains have been hit even harder by China’s recent blockade in several major cities facing rising COVID-19 cases.
Investors are concerned that the central bank may go too far in raising rates or move too fast, which could delay economic growth and potentially lead to a recession. On Wednesday, investors will get a more detailed view of the Fed’s decision-making process with the published minutes of the last policy meeting.
Wall Street will also receive several economic upgrades this week from the Department of Commerce. On Thursday, it will publish a report on gross domestic product for the first quarter, and on Friday – data on personal income and expenditure for April.
