Stocks notched solid gains Monday as
The S&P 500 rose 1.6%, it's third straight gain. The benchmark index was coming off its first four-week losing streak in more than a year and is on track to close out September with a loss of 4.2% after five months of gains.
The market’s gains were widespread, with more than 90% of the stocks in the S&P 500 higher. Big Tech stocks, which have been getting the most criticism for getting too expensive following their strong pandemic run, did the heaviest lifting. Several companies announced big mergers and acquisitions, which helped to push markets higher.
Optimism that
“There’s real concern about a second wave of infections, concern that we’re just riding the coattails of growth that happened after the economy opened up in May,” Richardson said. "Anything that looks like new lifeblood for the economy is read as a positive stimulus.”
The S&P 500 rose 53.14 points to 3,351.60. The Dow Jones Industrial Average gained 410.10 points, or 1.5%, to 27,584.06. The Nasdaq composite climbed 203.96 points, or 1.9%, to 11,117.53. Traders also bid up smaller company stocks, sending the Russell 2000 small-cap index up 35.43 points, or 2.4%, to 1,510.34.
One of the big worries hurting stocks this month has been fears that the market climbed too high and got too expensive through its 60% rally from late March into early September. But several companies announced big mergers and acquisitions, which show that at least some CEOs see value at current prices.
Energy stocks made broad gains after
Another strong gainer was Uber, which rose 3.2% after it won an appeal that will allow it to keep operating in
Big Tech stocks powered much of the S&P 500's gains.
Several factors have been behind the S&P 500's abrupt drop this month, which halted a remarkable return to record heights for
Many of those factors are still in place, which means analysts along
“We’re not out of the woods yet," Richardson said. "Investors should expect volatility, especially as we get closer to the election.”
Investors are still waiting for
The latest monthly employment report from the government on Friday could help shed some more light on the economic recovery, but it could also mean more volatility for the markets, said
"This week’s going to be all about the jobs numbers, that’s the elephant in the room,” he said.
Countering those uncertainties, though, is the tremendous support that the
European stock markets rallied broadly. The Germany DAX returned 3.2% and the French CAC 40 rose 2.4%. The
In
The yield on the 10-year
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AP Business Writer
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