Wall Street stocks rose steadily in daytime trading on Monday, helped by a broad rally that includes a number of tourism-related companies that could benefit from a larger economic recovery.
The S&P 500 is up 1.6% as of 2:00 pm ET, more than offsetting last week’s decline. More than 90% of the stocks included in the index rose, with technology companies and banks accounting for a significant portion of the gain. The Dow Jones Industrial Average rose 760 points, or 2.2%, to 35,345, while the Nasdaq rose 1.3%.
Small stocks outperformed the market as a whole, pushing the Russell 2000 up 2.6%.
The yields on bonds have risen, which is beneficial for banks, which are counting on higher yields in order to charge higher interest rates on loans. The yield on the 10-year Treasury bond rose to 1.44% from 1.33% on Friday night. JPMorgan Chase shares rose 2.3%.
Airlines, cruise operators and a wide range of travel companies have made significant strides. Norwegian Cruise Line jumped 11.8%, the largest gains in the S&P 500. Rivals Carnival and Royal Caribbean jumped 10.4% and 10.5%, respectively.
Delta Air Lines rose 8.1% and United Airlines rose 10.8%. Expedia Group shares rose 8.6%. The tourism industry is under pressure over concerns over the latest coronavirus variant and its potential to reduce economic activity during the peak of the holiday season.
Crude oil prices in the United States rose 4.3%, helping to boost energy stocks. Exxon Mobil shares rose 1.9%.
The potential impact of the omicronic variant of the COVID-19 virus is still unknown, although Wall Street was encouraged to see Dr. Anthony Fauci, the White House’s chief medical adviser, said early signs indicate it may be less dangerous than delta. option.
A broader market emerges from a turbulent week as investors assess the COVID-19 threat alongside mixed labor market data and lingering inflation concerns. The S&P 500 has seen two consecutive weekly falls this week. The benchmark index is up 22.7% for the year.
Investors are still reacting to the Federal Reserve’s plan to accelerate the end of support for the market and the economy, said Michael Aron, chief investment strategist at State Street Global Advisors.
The central bank plans to accelerate the pace of the decline in bond purchases, which has helped keep interest rates low. This has raised concerns that the Fed will raise benchmark interest rates earlier than expected next year.
“What you are seeing now is that prices are being priced in the markets, and this major shift in expectations is starting to take its toll on market leadership,” said Arone.
Banks and other sectors that benefit from higher interest rates are starting to lead the market, while industries that tend to suffer from higher rates, such as technology stocks, are lagging behind, he said.
Investors will get more economic data this week to help them get a clearer picture of the economy.
On Wednesday, the Labor Department is to publish a survey of vacancies and employee turnover for October, and on Thursday, a weekly report on unemployment benefits. Wall Street will get another update on inflation when the Labor Department releases its November CPI on Friday.
A combination of corporate news helped lift several stocks. Del Taco Restaurants rose 66% on news that Jack in the Box is buying it.
Department store operator Kohl’s rose 6% after active investor Engine Capital LP insisted on a sale or spin-off.
BuzzFeed fell 7.4% in its market debut after the digital media company went public through a merger with a specialized acquisition company.