Dow gains 600 points as stocks start week with a bounce

Stocks bounced higher on Monday, with gains for the Dow Jones Industrial of over 600 points. After posting eight consecutive weeks of losses, the Dow rallied 1.98%, or 618.54 points to close at 31,880.24.

The S&P 500 also closed higher, edging 1.86% to close at 3,973.75. Last week, the benchmark US index fell as much as 20.5% from its recent all-time high to sink into the bear territory before recovering to hover around -18.8%. The S&P 500 is on a seven-week losing streak.

Elsewhere, the Nasdaq Composite saw a 1.59% upside, while all the 11 sectors ended the normal trading session in the green.

Financials, energy and consumer staples added 3.2%, 2.6% and 2.1% respectively. Tech stocks also saw reduced sell-off pressure, with the sector up 2.3% on Monday. However, the consumer discretionary sector only moved +0.64%.

Bounce was ‘due’

As the markets traded higher intraday, with the Dow adding more than 650 points at one time, economist Mohamed A. El Erian observed:

We were overdue a bounce … and this is a good one. Sustaining it will require attracting dip buyers and, more generally, cash on the sideline; and, more importantly, avoiding new news that amplifiies concerns about growth and corporate earnings.

US stocks have started the week on a positive note as market observers point out that a bounce was due. As noted above, this follows weeks of downside pressure amid concerns over the global economy as inflation, higher rates and geopolitical factors continued to dictate sentiment.  

The post Dow gains 600 points as stocks start week with a bounce appeared first on Invezz.

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