How major United States stock indexes fared Monday

US stocks surged Monday following a wild week of reversals and sudden downturns that sent the market into correction territory.

The Dow Jones Industrial Average climbed more than 400 points Monday, extending the recovery that began Friday after the stock market's lowest performing week in two years. A drop of that size is known on Wall Street as a market "correction".

The S&P 500 posted no new 52-week highs and 32 new lows; the Nasdaq Composite recorded 24 new highs and 113 new lows.

The technological Nasdaq Composite rose by 1.6% to 6,981.96 points.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. "Yet investors' willingness to pay for one dollar of estimated earnings on S&P 500 has gone from $18.7 on 26 January to $16.8 on Friday".

A strong reading on U.S. consumer price data on Wednesday could fan fears over rising inflation and faster interest rate hikes, the same worries that sparked the sell-off after strong jobs data on February 2. Trump also unveiled a plan to spend $1.5 trillion on the country's ailing infrastructure over the next decade.

The Dow sees first back-to-back gains since February 1.

Semiconductor stocks showed a significant move to the upside on the day, driving the Philadelphia Semiconductor Index up by 3.1 percent. It's still up 15 percent over the past year.

Technology companies also rose.

The tech-heavy Nasdaq was still clinging to a 0.87 per cent gain for the year. Chipmaker Applied Materials climbed $1.42, or 3 percent, to $49.50. It confirmed a correction on Thursday, when it dropped 10 percent below the record. United States crude traded at around $60.14, while Brent futures were around $63.64.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

"We think we're going to be volatile for a few more trading days at least, as the market sorts out what's really been going on", Rob Haworth from the U.S. Bank Wealth Management said.

"The core CPI estimate is a modest decrease from last month".

Among the biggest movers was sportswear retailer Under Armour (UAA.N), up more than 17.36 percent on strong quarterly sales, and AmerisourceBergen (ABC.N), up 9.30 percent after the Wall Street Journal reported Walgreens (WBA.O) was seeking to buy out the drug distributor. Disney agreed to buy Fox's movie and television studios and some cable and worldwide TV businesses in December for $52.4 billion. Comcast also reportedly had talks with Fox.

Comcast stock fell 3 cents to $38.54 while Disney added 30 cents to $103.39.

Bond prices edged higher.

While the markets were repeatedly marching though record high territory over the past year, even mediocre companies benefited, analysts said. Real estate investment trusts declined and utilities didn't do as well as the rest of the market.

In other energy trading, wholesale gasoline fell 2 cents to $1.68 a gallon.

"Unless we get a problematic surprise, I think Wednesday can actually be the event that calms the markets down". Investors are closely watching the Federal Reserve, which could opt to raise interest rates at a faster-than-expected pace as inflation accelerates.

Petroleum-linked shares rose amid higher oil prices, with Halliburton winning 2.6 per cent, Schlumberger 2.5 per cent and Apache 2.4 per cent.

  • Anthony Vega