U.S. stocks ended sharply higher on Monday, with the Dow registering its best day since early March as investors shifted focus toward a strengthening economy. All the three major indexes ended in the positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.8% or 586.89 points to close at 33,876.97 points, recording its best single-day percentage gain since Mar 5. With Monday’s jump, the blue chip index also rebounded from its worst week since October 2020.
The S&P 500 climbed 1.4% or 58.33 points to finish at 4,224.79 points. This was the index’s best single-day percentage gain since May 14. The index also recorded its worst week since late February. The rally was led by energy and financial stocks.
The Energy Select Sector SPDR (XLE) advanced 3.2%, while the Financials Select Sector SPDR (XLF) gained 1.9%. Shares of Devon Energy Corporation DVN jumped 6.9%, while Occidental Petroleum Corporation OXY gained 5.4%. Devon Energy and Occidental Petroleum each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
All the 11 sectors of the benchmark index closed in positive territory.
The tech-heavy Nasdaq gained 0.8% or 111.10 points to close at 14,141.48 points, recording its highest close ever.
The fear-gauge CBOE Volatility Index (VIX) was down 13.57% to 17.89. A total of 10.1 billion shares were traded on Monday, lower than the last 20-session average of 11 billion. Advancers outnumbered decliners on the NYSE by a 2.86-to-1 ratio. On Nasdaq, a 1.44-to-1 ratio favored advancing issues.
Investors’ Optimism Help Markets
After a volatile last week that saw Dow and the S&P 500 recording their worst week in months, investors started the new week on a fresh. Stocks fell last week after the Fed gave a more “hawkish” outlook and hinted that the first increase in interest rates could be made as early as 2022. This dented investors’ sentiments.
However, markets bounced back to the green on Monday as investors shifted focus on the nation’s strengthening economy as COVID-19 cases falls and the government further eases restrictions. This has instilled hope in investors that the economic recovery will be faster than expected. This sent stocks on a rally, with energy and financial sectors making major gains.
Reopening Stocks Rally
Investors’ confidence got a further boost on Monday after the White House announced its plans of sharing 55 million COVID-19 vaccine doses globally to countries from across continents such as Latin America, Asia and Africa.
This gave them hope that international travel will reopen at a faster pace as more people across the globe get vaccinated. This sent reopening stocks such as Norwegian Cruise Line Holdings Ltd. NCLH and The Boeing Company BA on a rally. Shares of Norwegian Cruise Line and Boeing gained 3.6% and 3.3%, respectively.
No economic data was released on Monday.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
To read this article on Zacks.com click here.