U.S. stocks closed higher on Monday as rallying banks and rallying tech companies supported a broad rally following Wall Street’s longest weekly losing streak since the dot-com bust more than 20 years ago. .
All three major stock indices gained, with the biggest boost provided by the rebound in growth and technology stocks, especially Apple (+4.01%) and Microsoft (+3.20%).
The Dow Jones Industrial Average gained 1.98% to 31,880.24 points, the NASDAQ Composite rose 1.59% to 11,535.27 points and the S&P 500 gained 1.86% to 3,973.75 points.
Interest rate-sensitive banks rose after the largest US lender, JPMorgan Chase & Co, raised its interest income outlook for the current year. Its shares gained 6.19% to $124.60 each. Wells Fargo shares gained 5.16% to $43.82. Citi’s rose 6.07% to $52.77 each.
“It feels like a relief rally rather than a fundamental shift in investor sentiment,” said Oliver Pursche, senior vice president at Wealthspire Advisors.
short-term improvement
For Art Hogan, an analyst at National Securities, a series of technical indicators showed that the market could address this rebound, and that caused a trend inflection.
Wall Street decreed that the levels reached after several consecutive weeks of withdrawal constituted a “floor” on which to lean, even in the short term.
Another favorable element is that on Monday “we didn’t have bad news. The market was finally able to catch its breath, at least for the time being,” he explained.
The wind that pushed Wall Street was also fueled by rumors of mergers and acquisitions, which normally show a certain vitality.
The S&P 500 had closed Friday 18.7% below its all-time closing high on Jan. 3. If the index closes 20% or more lower, it will confirm that it is in a bear market.
In Mexico, the S&P/BMV IPC, of the Mexican Stock Exchange fell 0.27% to 51,376.89 integers and the FTSE-BIVA lost 0.22% to 1,061.17 units.