Stocks notch second day of gains Monday, Dow closes more than 400 points higher

News Team

2 years ago

The three major indexes closed higher Monday as traders tried to add to sharp gains seen last week and weighed the latest moves in rates.

The Dow Jones Industrial Average added 417.06 points, or 1.3%, ending the day at 31,499.62. The S&P 500 gained about 1.2% and closed at 3,797.34. The Nasdaq Composite advanced nearly 0.9% to end at 10,952.61.

Investors will watch for earnings from Big Tech names. Results for Alphabet and Microsoft are out Tuesday. Apple and Amazon are due Thursday.

“It’s all about earnings, and in our view, earnings are coming in, honestly, at or below expectation,” said Terry Sandven, chief equity strategist at U.S. Bank’s wealth management division. He said inflation data and interest rates are both also setting the tone, but investors are currently clinging to earnings and forward guidance during the peak reporting season. “To a large degree, as the next two weeks go, so too will the broad market go.”

The 10-year Treasury yield on Monday ticked higher, recovering from an earlier decline. It last traded up about three basis points, trading at 4.25%. The 2-year yield added roughly two basis points, at 4.52%.

The moves come after yet another volatile week for stocks as third-quarter earnings season heats up. The major averages had their biggest weekly gains since June, with the Dow advancing 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2%, respectively.

A chunk of those gains came Friday, when the Dow rallied more than 700 points, while the S&P 500 and Nasdaq each popped around 2.3%. Investors reacted to corporate earnings and a Wall Street Journal report showing some Fed officials were concerned over interest rate hikes going too far.

“What’s unique to this week is, of course, we’re starting at a high,” said Kelsey Mowrey, president of Motley Fool Asset Management. “That strong jobs data, I think, has given the Fed the ammo they need to continue raising rates, but the news Friday really shook the market in a positive way.”