Jennifer Sor
Photo by Spencer Platt/Getty Images US stocks soared on Monday in a relief rally as investors await a slew of high-profile earnings reports. The Dow jumped 550 points, and the Nasdaq Composite rose more than 3%. Goldman Sachs warned stocks are still to expensive, even after a 25% drop in the S&P 500 this year. Loading Something is loading.
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US stocks soared on Monday, picking up steam in relief rally after last week’s inflation report and mixed bank earnings rattled markets. The Dow Jones Industrial Average gained 550 points, while the S&P 500 and Nasdaq Composite gained 2.65% and 3.43% respectively.
Investors are awaiting a fresh batch of corporate earnings reports, with tech giants like Tesla, Netflix, and IBM to show how they’ve weathered sky-high inflation and rising interest rates in the past quarter. An earnings beat from Bank of America was cheered by investors on Monday, but experts remain weary that stocks are still fragile, with Goldman Sachs warning that the S&P 500 is still overpriced despite the index falling 25% this year.
Oil traded lower to $85.34 a barrel, despite the recently announced production cut from OPEC+. Energy markets are tense on fears that Biden could release another 100 million crude barrels from the SPR, which would lower oil prices although “that’s not what [the reserve is] meant to be used for,” according to Energy Aspects’ Amrita Sen.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Monday:
S&P 500: 3,677.96, up 2.65% Dow Jones Industrial Average: 30,185.82, up 1.86% (550.99 points)Nasdaq Composite: 10,675.80, up 3.43% Here’s what else is happening today:
The S&P 500 could rally by the end of the year 0n potential positive earnings surprises, according to Oppenheimer.The stock market just passed a test that suggests the secular bull market will continue, Bank of America said in a note.The market is seriously underpricing the risk of stagflation, Deutsche bank warned, which could mean long-term downside for both stocks and bonds. Investors also haven’t fully priced in the impact of OPEC’s production cuts on the stock market, Bank of America said.The US dollar could remain stronger for longer as the market hasn’t fully priced in 3 key things, Goldman Sachs said in a note.In commodities, bonds, and crypto
West Texas Intermediate crude slumped %0.25 to $85.41 per barrel. Brent crude, the international benchmark, slipped 0.07% to $91.57. Gold rose 0.25% to trade at $1,653.20 per ounce.The 10-year Treasury yield inched higher to 4.02%. Bitcoin rose about 1% to $19,535. Disclosure: Mathias Döpfner, CEO of Business Insider’s parent company, Axel Springer, is a Netflix board member.
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