February 28, 2024

Brighton Journal

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Stocks made gains on the second day on Monday, and the Dow closed above 400 points

Stocks made gains on the second day on Monday, and the Dow closed above 400 points

The three major indices closed higher on Monday as traders tried to add to the sharp gains they saw last week and weigh the recent price moves.

The Dow Jones Industrial Average added 417.06 points, or 1.3%, to end the day at 31,499.62 points. The S&P 500 rose about 1.2% and closed at 3,797.34. The Nasdaq Composite advanced nearly 0.9% to close at 10,952.61.

Investors will be watching earnings from the big tech names. Alphabet and Microsoft results will be released on Tuesday. Apple and Amazon deliveries are scheduled for Thursday.

“It’s all about earnings, and in our opinion, earnings are, honestly, coming in at or below expectations,” said Terry Sandvin, chief equity strategist at US Bank Wealth Management. He said inflation and interest rate data are setting the tone as well, but investors are currently holding on to earnings and forward guidance during peak reporting season. “Pretty much, as the next two weeks go by, the broad market is going to go as well.”

The 10-year Treasury yield rose on Monday, Recovering from a previous deterioration. It was last traded up about three basis points, trading at 4.25%. The two-year yield added nearly two basis points, at 4.52%.

The moves come after another volatile week for stocks as the third-quarter earnings season heated up. The major averages made their biggest weekly gain since June, with the Dow Jones advancing 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2%, respectively.

A large part of those gains came on Friday, when the Dow rose more than 700 points, while the Standard & Poor’s 500 and Nasdaq both rose about 2.3%. Investors reacted to corporate earnings and a Wall Street Journal report showing that some Fed officials were concerned about interest rates going too far.

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“What’s special about this week is, of course, that we’re starting at the highest level,” said Kelsey Murray, president of Motley Fool Asset Management. “I think this strong jobs data gave the Fed the ammunition it needed to keep raising rates, but the news on Friday really shook the market in a positive way.”