Stocks Begin Week Higher with Broad Gains…..
U.S. stocks closed higher, as equities saw broad gains across all sectors, following last week’s tumultuous movements. Carryover from the Fed’s recent actions remained top of mind for investors as market participants continued to digest last week’s tweaked stance by the Fed, which took a hawkish tone. This week’s full slate of Fed speak is likely to continue to be monitored closely for more clues and insights and will be headlined by Chairman Jerome Powell’s testimony tomorrow on Capitol Hill. In equity news, Raven Industries rallied after agreeing to be acquired by CNH Industrial for an enterprise value of $2.1 billion, while American Airlines continued to cancel flights as a labor shortage has been met with ramped-up travel demand. Meanwhile, the U.S. dollar gave back some of last week’s rally that took the greenback to levels not seen since April and Treasuries remained choppy as yields rose after a noticeable curve flattening in the wake of the Fed’s announcement. Gold rebounded and crude oil prices saw a big gain which added to a recent run. Asia finished mixed, but Japan noticeably fell, and Europe closed mostly higher.
The Dow Jones Industrial Average rallied 587 points (1.8%) to 33,877, the S&P 500 Index rose 58 points (1.4%) to 4,225 and the Nasdaq Composite advanced 111 points (0.8%) to 14,141. In moderately heavy volume, 1.0 billion shares were traded on the NYSE and 4.4 billion shares changed hands on the Nasdaq. WTI crude oil rose $1.83 to $73.12 per barrel. Elsewhere, the Bloomberg gold spot price increased $19.08 to $1,783.25 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—slipped 0.4% to 91.85.
Treasuries were lower, as the economic calendar was void of any major releases today. The yield on the 2-year note was nearly unchanged at 0.26%, while the yield on the 10-year note rose 5 basis points (bps) to 1.49%, and the 30-year bond rate increased 10 bps to 2.11%.
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