Stocks shrugged off a wobbly start Monday to finish solidly higher on Wall Street, as the market clawed back half its losses from last week. The S&P 500 rose 1.5% after having been down 0.3%. The market rallied after a much healthier-than-expected report on the housing market put investors in a buying mood. Technology, industrial and communications stocks accounted for much of the market's broad gains. Treasury yields were mixed and oil prices rose.
Gains for Boeing and Apple in particular helped to lift Wall Street indexes. Boeing jumped 14.4%, its best day in more than two months. The company's troubled 737 Max jet looks set to begin test flights soon. Apple added 2.3% as customers keep buying its products regardless of whether they're quarantined.
The pickup in U.S. stocks after a weekly loss marks another choppy move for markets around the world, which have been swinging back and forth in recent weeks as investors balance hope for a relatively quick economic rebound as more businesses reopen against worry as an increase in confirmed new coronavirus cases forces some businesses to close their doors again.
“It's just another day of normal volatility, its unfortunately what we're living with now,” said Mark Litzerman, head of global portfolio management at Wells Fargo Investment Institute. “It tends to be this tug of war between better economic data coming through versus a rise in cases.”
A rise in infections of the new coronavirus, including in the U.S. South and West, has dented the optimism that earlier sent the S&P 500 screaming nearly all the way back to the record it reached in February.
The worry is that the worsening levels could choke off the budding improvements the economy has shown recently as states and other governments ease up on lockdown orders, even with the Federal Reserve and other central banks pumping unprecedented amounts of aid into the economy.
Florida and Texas put new restrictions on bars to slow the spread of the virus, for example, which helped drive the S&P 500 to a loss of 2.9% last week. Other government around the world are likewise backtracking on reopening their economies following widespread lockdowns that sent the global economy into a sudden, severe recession.
At a glance
• The S&P 500 gained 44.19 points to 3,053.24.
• The Dow Jones Industrial Average rose 580.25 points, or 2.3%, to 25,595.80.
• The Nasdaq composite added 116.93 points, or 1.2%, to 9,874.15.
• The Russell 2000 index of small-cap stocks picked up 42.43 points, or 3.1%, to 1,421.21.