Wall Street bounces back from losing streak as tech, bank stocks gain

Topics Wall Street | Dow Jones | US stocks

All the 11 major S&P 500 sectors were up in early trading
US stocks jumped on Monday, bouncing back from the longest weekly losing streak in a year for the S&P 500 and the Dow, with technology, banks and travel shares leading the advance.

All the 11 major S&P 500 sectors were up in early trading.

The S&P 500 financials index jumped 2.6 per cent and was on track for its best day in two and a half months.

Shares of technology-related stocks, which bore the brunt of a sell-off earlier this month, were higher, with Facebook Inc , Alphabet Inc, Amazon.com Inc, Apple Inc and Netflix Inc adding about 1 per cent each.

John Traynor, chief investment officer at People's United Advisors, said the broad-based rally was a positive for risk sentiment as "what it tells you is that confidence is increasing that the economy is going to rebound."

Travel-related shares, including Delta Air Lines, United Airlines and American Airlines Group Inc, rose between 4.7 per cent and 5.0 per cent.American Airlines Group Inc said on Friday it secured a $5.5 billion Treasury loan and could tap up to $2 billion more in October.

Worries over rising coronavirus cases and waning hopes of more fiscal stimulus have led to a spike in market volatility in the past few weeks, and analysts expect trading to remain choppy in the run-up to the Nov. 3 presidential election.

"We don't see this as the beginning of another big leg up. Between now and the election, you're going to see a lot of turmoil," Traynor said.

Optimism spilled over from Asian markets after data over the weekend showed profit at China's industrial firms rose for a fourth straight month in August.

"All of this data reminds investors that we're not headed for a new bear market or a new recession," said Sam Stovall, chief investment strategist at CFRA in New York.

At 11:32 a.m. ET, the Dow Jones Industrial Average was up 478.00 points, or 1.76 per cent, at 27,651.96, the S&P 500 was up 51.13 points, or 1.55 per cent, at 3,349.59. The Nasdaq Composite was up 151.24 points, or 1.39 per cent, at 11,064.80.

Boeing shares rose 6.6 per cent after Federal Aviation Administration Chief Steve Dickson said the agency was set to conduct a 737 MAX evaluation flight this week, a key milestone as the plane maker aims for approval to resume flight.

Devon Energy Corp jumped 10 per cent after the oil and gas producer said it would buy peer WPX Energy Inc for $2.56 billion. WPX Energy shares surged 14 per cent.Uber Technologies Inc rose 4.9 per cent after the ride-hailing firm won a legal bid to restore its London operating licence, which was taken away over safety concerns.

Advancing issues outnumbered decliners by a 6.55-to-1 ratio on the NYSE and by a 3.23-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and no new low, while the Nasdaq recorded 38 new highs and 13 new lows.



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