US stocks bounce back from rout, Dow up almost 2%

play article
Subscribers can listen to this article
d3sign/Stock photo/ Getty

Wall Street stocks rallied Monday, staging a strong bounceback from last week's rout that was led by financial, industrial and energy shares.

"The market is correcting the overcorrection from last week," Maris Ogg of Tower Bridge Advisors said of Monday's session.

The Dow last week suffered its worst week since October 2020, dropping 3.4 percent, due in part to unease at the Federal Reserve's shift towards a more hawkish stance on monetary policy.

But the blue-chip index led the market Monday, winning 1.8 percent to finish at 33,876.97.

The broad-based S&P 500 gained 1.4 percent to 4,224.79, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 14,141.48.

Investors were rattled last week when the Fed moved up its forecasts for raising interest rates, while still arguing that consumer price increases were transient.

John Williams, head of the Federal Reserve Bank of New York, said at a gathering Monday that he still thinks higher prices are due "mostly" to factors connected with the reopening of the economy. These stresses should abate over time, but the Fed will continue to monitor incoming data, he said.

Fed Chair Jerome Powell is scheduled to appear before a congressional panel Tuesday. This week's calendar also includes economic reports on durable goods orders and new home sales.

Investors are also monitoring talks in Washington on a bipartisan infrastructure package.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
In light of the recent looting, do you think a basic income grant is the right approach to deal with SA’s hunger and poverty problems?
Please select an option Oops! Something went wrong, please try again later.
It will go a long way in helping fight the symptoms of SA’s entrenched inequality, especially for those who are starving right now
20% - 1377 votes
SA’s problems are complex, and we instead need to spend that money on building and growing our economy, which will help the country in the long run
31% - 2155 votes
All grants are a problem as they foster a reliance on handouts
49% - 3418 votes