US. Equities rose on Monday after global share prices rallied, as a broad rally in all eleven sectors of the S & P 500 helped the big indexes to reduce their losses for the month.
The Dow Jones Industrial Average climbed 206 points or 0.9% to 24894 shortly after the opening bell. The S & P 500 rose 1.1% and the Nasdaq Composite 1.3%.
The footsteps followed what had been a bruise session for the stock on Friday. Equity markets moved between small gains and steep losses in recent weeks as investors grappled with signs of a slowdown in global economic growth and concerns about trading tensions. The Whiplash has brought the Dow Industrials, S & P 500 and Nasdaq Composite on track for the worst month in over eight years.
Utilities, real estate investment trusts and consumer staples significantly outperformed companies' growth prospects Investors are wondering if the economy is slowing down.
brendan mcdermid / Reuters
Still, many say that the US economy still looks like it has room to run. This helps to boost investor confidence in a potential recovery.
"I think to actually renew leadership and confidence in the market, you need to see more strength in growth stocks," said Patrick Spencer, vice chairman of Baird's shares. But if you get "no recession [sign of] and maybe a more cautious Fed, you could start a fire under this market," he added. "Bear markets are almost always associated with a recession, and I just do not see it on the horizon," he said.
Corporate news contributed to volatility in the technology sector on Monday.
Red Hat shares jumped 49 points after International Business Machines agreed to acquire the software and services company for approximately $ 33 billion for its largest acquisition. The shares of IBM fell by 3.5%.
In other countries, the Stoxx Europe 600 rose 1.7% after its mixed meeting in Asia, its lowest level since December 2016.
Markets barely responded to reports that Angela Merkel is not seeking stimulus-her as chairman of her conservative party after 18 years at the top. The euro lost momentum against the dollar, but remained flat until midday.
Italian stocks led to profits. The FTSE MIB benchmark index rose 2.3% and Italian government bond yields fell after Friday's S & P Global Ratings left Italy's debt rating unchanged, with negative outlooks. Some investors had expected a downgrade.
The European banking sector grew by 2.3%. Shares in HSBC Holdings – one of the largest weights in the index – helped drive profits after the bank significantly outperformed its estimate of costs and earnings estimates The third quarter.
The report also contributed to the upswing in Hong Kong markets, where Hang Seng gained 0.4%.
Japan's Nikkei fell 0.2% and markets in mainland China plunged after data from Chinese industry was known over the weekend. Companies reported much slower earnings growth last month.
The Shanghai Composite Index tumbled 2.2%, led by drops in liquor stocks, after quarterly sales and earnings at Kweichow Moutai, China's largest alcohol maker, declined.
Investors will do this later this week Watch out for economic readings, including a monthly report on Friday.
"If you're a cop, why serve more?" Said Jim Paulsen, chief investment strategist for The Leuthol d Group. Really good economic reports are fueling concerns that the economy is overheating and softening the recession, he said. "How can you get reports about the economy or profits that are not too hot or too cold?"
– Saja Vaishampayan contributed to this article.
Contact Riva Gold at [email protected]