Stocks rose sharply on Monday as Treasury yields rebounded, quelling fears of a possible recession. Equities also got a boost after the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei.
The Dow Jones Industrials popped 209.79 points to rebound to 26.095.80, led by Nike and Goldman Sachs.
The S&P 500 gained 27.78 points, or 1%, to 2,916.63, as the energy and tech sectors outperformed.
The NASDAQ jumped 84.94 points, or 1.1%, to 7,980.93
These gains add to a rebound that started last week after the Dow posted its worst session of 2019. The 30-stock index plummeted 800 points, or 3.1% on Wednesday before regaining some of the lost ground on Thursday and Friday. The S&P 500 is still down 2.1% in August and off more than 3% from a recent record.
Bond yields moved up (see below), and bank shares rose along with them. Bank of America traded 0.9% higher along with J.P. Morgan Chase. Citigroup climbed 1.3%.
The Wall Street Journal and Reuters reported the Commerce Department was preparing to extend a license for 90 days, which will allow Huawei to continue business with the U.S. companies to service existing customers. The current agreement is set to end on Monday.
Shares of chip makers rose on the reports. On Semiconductor picked up 3.6%, and AMD gained 1.2%, respectively. Micron Technology rose 2.1%.
Apple also advanced 2.5%, after CEO Tim Cook spoke with President Trump on Sunday, who said Cook made a “good case” that it would be hard for Apple to pay tariffs, when Samsung does not face the same level of duties given its manufacturing in South Korea.
Prices for the benchmark 10-year U.S. Treasury tumbled, lifting yields to 1.6% from Friday’s 1.56%. Treasury prices and yields move in opposite directions
Oil prices acquired 73 cents to $55.60 U.S. a barrel.
Gold prices faltered $15.80 to $1,507.800 U.S. an ounce.
