Stocks rose on Monday, making a positive start to the week after the S&P 500 briefly entered bearish territory on Friday, a symbolic marker of investor pessimism about the health of the economy. The index still closed the week with its seventh consecutive decline, the longest losing streak since the dot-com crash.
“We’ve seen four straight weeks with at least one day in negative territory of 3% or more in the S&P 500. Those are big swings,” said Liz Young, head of investment strategy at SoFi. “I think it’s only natural that the market is seeing a bit of relief here and there from these big low days.”
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The S&P 500 jumped about 1.9% in afternoon trading. The Nasdaq composite rose 1.5%.
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Shares of software company VMware rose more than 20% on reports that semiconductor giant Broadcom was in talks to acquire the company.
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Retailers regained their footing on Monday, led by Ross Stores, which was the best performer in the S&P 500. Its stock rose 10%, reversing some of last week’s decline on fears that inflation could dampen the economy. consumer enthusiasm. Banks also outperformed the market, after JPMorgan Chase made an upbeat presentation to investors, raising its earnings forecast for this year. Its stock rose 7%.
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European stock indices were higher, with the Stoxx Europe 600 up 1% on Monday. The euro gained 1% against the dollar, after Christine Lagarde, the president of the European Central Bank, wrote in a blog post that high inflation could lead the central bank to raise interest rates during of its July meeting.
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Asian markets were mixed, with Hong Kong’s Hang Seng down 1.2%, China’s CSI 300 down 0.6% and Japan’s Nikkei 225 up 1%.
