DJIA: 34,364.50, up 99.13
S&P 500: 4,410.13, up 12.19
Nasdaq: 13,855.13, up 86.21
Stocks rebound in whirlwind session
U.S. stocks finished higher on Monday as some investors finally emerged to buy the dip in equities. The S&P 500 added 0.3%, erasing an earlier drop that had temporarily pushed the broad benchmark into correction territory, defined as a 10% decline from a recent peak. The Nasdaq Composite advanced 0.6%, climbing back from an earlier rout of nearly 5%. The Dow gained 99 points, recouping all of its more than 1,000-point intraday loss and snapping a six-day losing streak. The small-cap Russell 2000 Index surged roughly 2% after briefly tumbling into bear market territory, defined as a 20% drop from a recent all-time high. Eight of 11 S&P 500 sectors closed in positive territory, with the more traditionally defensive Utilities, Consumer Staples, and Health Care groups lagging.
A perceived risk off tone had characterized most of the session following the worst weekly drawdown for both the S&P 500 and Nasdaq Composite since March 2020. Wall Street is bracing for a busy week of corporate earnings and the start of the Federal Reserve’s (Fed) two-day policy meeting tomorrow, remaining jittery about looming monetary policy tightening.
Perceived safe haven assets caught a bid early in the session amid escalating geopolitical tensions between Russia and Ukraine. In FOREX trading, a gauge of the U.S. dollar jumped 0.3%. However, the yield on the 10-year note finished one basis point higher (0.01%) at 1.77%. The yield on the two-year note fell three basis points (0.03%) to 0.97% after its $54 billion auction was met with the strongest demand since February 2020.
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