EconomyEditor's PickNewsWall Street kicks off week on high note as tech, bank shares gain

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imageStock Markets1 hour ago (Sep 28, 2020 10:40AM ET)

(C) Reuters. A nearly empty trading floor is seen as preparations are made for the return to trading at the NYSE in New York

By Devik Jain and Shreyashi Sanyal

(Reuters) – U.S. stocks surged on Monday, bouncing back from the longest weekly losing streak in a year for the S&P 500 and the Dow, with technology, banks and travel shares leading the advance.

All of the 11 major S&P 500 sectors rose in early trading, while the S&P 500 banks index <.spxbk> jumped 2.1% and was on track for its best day in one month.</.spxbk>

Travel-related shares including Delta Air Lines (N:DAL), United Airlines (O:UAL) and American Airlines Group Inc (O:AAL) rose between 2.5% and 3%.

American Airlines Group Inc (O:AAL) said on Friday that it secured a $5.5 billion Treasury loan and could tap up to $2 billion more in October depending on the allocation of extra funds under a $25 billion loan package for airlines.

“Traders tend to gravitate toward those groups that are most oversold because they have the greatest upside potential,” said Sam Stovall, chief investment strategist at CFRA in New York, referring to banks and travel-related stocks.

Worries over rising coronavirus cases and waning hopes of more fiscal stimulus have led to a spike in market volatility in the past few weeks, and analysts expect trading to remain choppy in the run-up to the Nov. 3 presidential election.

Optimism spilled over from Asian markets after data over the weekend showed profit at China’s industrial firms rose for a fourth straight month in August.

“All of this data reminds investors that we’re not headed for a new bear market or a new recession,” Stovall said.

At 10:00 a.m. ET, the Dow Jones Industrial Average (DJI) was up 352.90 points, or 1.30%, at 27,526.86 and the S&P 500 (SPX) was up 38.95 points, or 1.18%, at 3,337.41. The Nasdaq Composite (IXIC) was up 122.90 points, or 1.13%, at 11,036.46.

Shares of technology-related stocks, which bore the brunt of a selloff earlier this month, were higher, with Facebook Inc (O:FB), Alphabet Inc (O:GOOGL), Amazon.com Inc (O:AMZN), Apple Inc (O:AAPL) and Netflix Inc (O:NFLX) all adding about 1%.

Boeing (N:BA) shares rose 5.0% after Federal Aviation Administration Chief Steve Dickson said the agency was set to conduct a 737 MAX evaluation flight this week, a key milestone as the planemaker aims for approval to resume flight.

Devon Energy Corp (N:DVN) rose 4.5% after the oil and gas producer said it would buy peer WPX Energy Inc (N:WPX) for $2.56 billion. WPX Energy shares jumped 7.3%.

Uber Technologies Inc (N:UBER) rose 3.8% after the ride-hailing firm won a legal bid to restore its London operating licence, which was taken away over safety concerns.

Advancing issues outnumbered decliners by a 7.56-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 3.52-to-1 ratio on the Nasdaq.

The S&P index recorded 3 new 52-week highs and no new lows, while the Nasdaq recorded 31 new highs and 4 new lows.

Wall Street kicks off week on high note as tech, bank shares gain

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