United States stocks close strong, extend two-day win streak

Adjust Comment Print

The Dow Jones Industrial Average is one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.

Markets have been on edge over the past week due to the likelihood of higher interest rates.

S&P 500 measures the performance of 500 widely held common stocks of large-cap USA companies.

Saroliya added, "Whatever we think about the precise triggers - be it higher rates driven by inflation surprises or a messy liquidation of volatility-sensitive investments - what's evident yet again is that psychology exerts a disproportionate impact on markets". The index also sank into a correction area.

They have slumped recently after winning a big portion of the market's gains over the a year ago.

The benchmark S&P 500 finished with growth of 1.4% to 2,656.00 points, and the raw materials and information technology sectors performed best.

The correction was long overdue and may last another few weeks, but there still may be room for USA stocks to rise another 10 percent to 15 percent before the end of the year, said Douglas Cohen, a managing director at Athena Capital Advisors.

The Nasdaq Composite .IXIC added 0.45 percent to 7,013.51.

Tonga: Cyclone Gita leaves trail of destruction
Damages in Tonga after TC Gita . "The other staff members could only make it the next day and when they came they all fell in". The Labour Minister said she had a sleepless night worrying about the safety of her parents in Tonga as the cyclone hit.

Market experts also attributed the selloff, including the overnight slide in S&P 500 futures, to the violent unwind of a trade betting on volatility in United States stocks staying low as the CBOE Volatility index, known as the VIX, notched its biggest one-day jump on Monday in over two years.

Advancing issues outnumbered declining ones on the NYSE by a 2.80-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored advancers.

Despite the two-day recovery, the S&P 500 is down 7.5 percent from its recent high, and investors expect far more volatility in the stock market than they did two weeks ago.

The latest move higher follows news that the White House will unveil a long-awaited infrastructure plan that includes $200 billion in federal infrastructure spending over 10 years. Bond yields rise as prices fall.

The release this Wednesday of the Consumer Price Index for January will provide some more clarity on inflation. The futures on US WTI crude oil ended with increase of 0.09 USD to 59.29 USD per barrel, while Brent oil fell by 0.20 USD to 62.59 USD per barrel. after rising to 64.40 USD earlier during the session. Silver lost 20 cents, or 1.2 percent, to $16.14 an ounce.

The S&P 500 is down 9.3 percent from the record high it set January 26. The index rose 1.5 percent Friday but still wound up with its worst weekly loss in more than two years.

CURRENCIES: The dollar rose to 108.58 yen from 108.53 yen.

Gold rose $10.70 to $1,326.40 an ounce.