U.S. stocks climbed on Monday as the market recouped some of the steep losses caused by the Federal Reserve’s policy shift.
The Dow Jones Industrial Average jumped 586.89 points, or nearly 1.8%, to 33,876.97 to post its best day since March 5. The blue-chip benchmark rebounded from what was its worst week since October. The S&P 500 gained 1.4% to 4,224.79, sitting within 1% from its record high after Monday’s comeback rally. The Nasdaq Composite was the relative underperformer with a 0.8% gain to 14,141.48 as some key tech names including Amazon, Tesla, Nvidia and Netflix registered losses.
Commodity stocks that were hit hard last week led the market comeback on Monday as the S&P 500 energy sector rallied. Devon Energy climbed nearly 7%, while Occidental Petroleum rose about 5.4%. Reopening plays including Norwegian Cruise Line and Boeing both climbed more than 3%. Banks, including JPMorgan, Bank of America and Goldman Sachs, also rebounded. The small cap Russell 2000 jumped more than 2%.
These sectors tied to the economic recovery led last week’s sell-off in stocks. The S&P 500 financials and materials sectors lost more than 6% on the week, while energy fell more than 5% and industrials dropped more than 3%.
U.S. stocks fell last week as investors digested new economic projections from the Fed and worried rate hikes could come sooner than expected. The central bank last Wednesday raised its inflation expectations and forecast rate hikes in 2023.
Reference: CNBC
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