Wall Street Ends Sharply Higher, Led by Surging Dow


Wall Street rallied on Monday, with the Dow completing its strongest session in over three months as investors piled back in to energy and other sectors expected to outperform as the economy rebounds from the pandemic.

The smallcap Russell 2000 and the Dow Jones Transports Average, considered a barometer of economic health, both jumped about 2.

The SP 500 value index, which includes banks, energy and other economically sensitive sectors and has led gains in U.S. equities so far this year, surged 1.9, outperforming a 0.9 rise in the growth index.

That was a stark reversal from last week, when the Feds hawkish signals on monetary policy sparked a round of profit taking that wiped out value stocks lead over growth this month and triggered the worst weekly performance for the Dow and the SP 500 in months.

The overall theme here is the market still does not know whether it wants easy money or tight money and its in a tug of war, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.

All 11 SP 500 sector indexes rose, with energy jumping 4.3 and leading the way, followed by financials, up 2.4.

Microsoft Corp rose 1.2 to close at an alltime high.

The SP 500 has traded in a tight range this month as investors juggled fears of an overheating economy with optimism about a strong economic rebound.

Focus this week will be on U.S. factory activity surveys and home sales data, while Fed Chair Jerome Powell testifies before Congress on Tuesday.



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