Markets

US stocks climb as Dow adds 409 points

US stocks climb as Dow adds 409 points

Stocks extended gains for a second straight day Monday to help erase the memory of the worst week for equities two years.

The Dow rose 410 points, or 1.7 percent, to 24,601.

USA stocks are extending gains from late-Friday, putting the market on track for a strong start to the new week.

The S&P 500 rose 1.4 percent Monday with energy and financials as the top performing sectors.

Meanwhile, the yield on United States 10-year treasuries touched a new four-year high of 2.902% before settling back to close at 2.857%.

"You nearly could hear a collective sigh of relief on Friday when the market closed higher on the day - and ahead of a weekend at that", said John Stoltzfus, the chief investment strategist at Oppenheimer Asset Management, in a note on Monday.

The S&P 500, the benchmark for many index funds, gained 36.45 points, or 1.4 percent, to 2,656.

The Dow Jones average was up 231 points at 24,422 and the S&P 500 was up 20 points at 2,640.

United States of America stocks began to wobble last Friday after a healthy U.S. labor market report sparked a spike in bond yields and fears of rising inflation.

The benchmark indexes remain far from the record highs that had dazzled investors for more than a year.

Over three-fifths of the S&P 500 companies have reported their earnings, with just about 78 percent beating profit expectations, according to data. Trump also unveiled a plan to spend $1.5 trillion on the country's ailing infrastructure over the next decade. The U.S. consumer-price index will be released January and may reveal the extent the tighter jobs market is creating inflation.

The correction was long overdue and may last another few weeks, but there still may be room for USA stocks to rise another 10 percent to 15 percent before the end of the year, said Douglas Cohen, a managing director at Athena Capital Advisors.

After huge gains in the first weeks of this year, stocks tumbled Friday after the Labor Department said workers' wages grew at a fast rate in January.

Investor attention is focused on the question of inflation. Brent crude, used to price global oils, dropped 16 cents to $62.43 per barrel in London.

Bond prices were little changed. The yield on the 10-year Treasury was 2.858 percent on Monday, compared with 2.829 on Friday.

In other energy trading, wholesale gasoline fell 2 cents to $1.68 a gallon. Silver jumped 43 cents, or 2.7 percent, to $16.57 an ounce. Heating oil dipped 3 cents to $1.99 a gallon. Hong Kong's Hang Seng index added 1.4 per cent to 29,884.06 and the Shanghai Composite Index advanced 1.0 per cent to 3,185.86.

The gold prices rose because of the depreciation of the dollar.

Germany's DAX shed 0.4 per cent to 12,239 and the CAC 40 of France fell 0.3 per cent to 5,122. The euro rose to $1.2284 from $1.2231.