The S&P 500 gained 71.46 points, or 1.8%, to finish at 3,972.82 points, while the Nasdaq advanced 182.40 points, or 1.6%, to 11,531.91. The Dow Jones Industrial Average rose 625.10 points, or 2%, to 31,887.00.
All three major US stock indices posted solid gains, with the greater impulse provided by the rebound of the technology and growth stocks, especially Apple and Microsoft, which gained 4% and 3.2%, respectively.
Interest-sensitive banks jumped as much as 6.2% after the largest US lender, JPMorgan Chase & Co, raised its interest income outlook for the current year.
“Feels like a relief rally rather than a fundamental shift in investor sentiment,” said Oliver Pursche, senior vice president at Wealthspire Advisors. “Investors as a whole feel there is another hit to come and they are probably right in the short term,” he added.
The S&P 500 had closed Friday 18.7% below its all-time closing high on Jan. 3. If the benchmark index closes 20% or more below that record, it will be confirmed to be in a bear market ever since.
Markets have been rocked in recent weeks by the persistent inflation and the aggressive attempts of the Federal Reserve to curb it, as the world economy grapples with the fallout from Russia’s invasion of Ukraine.
“Today it seems that the market is less fearful about the inflation factor and that the Fed could orchestrate a soft landing, so to speak,” said Chuck Carlson, chief executive of Horizon Investment Services. “But the trend is still down,” he added.
Market players could get a clue about the Fed’s mood when the minutes of its latest policy meeting are released on Wednesday.
A number of economic indicators this week could support the idea that inflation peaked in March, and also if high prices have harmed the purchasing power of consumers.
Source: Ambito
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