U.S. stock markets rebounded on Monday with a great vigor after a bleeding last Friday. Yesterday’s rally followed President Donald Trump’s conciliatory comment on the recent escalation of trade conflicts between the United States and China. All three major stock indexes ended in positive territory. The rally was broad-based as small- cap stocks also witnessed a sharp rise.
The Dow Jones Industrial Average (DJI) advanced 1.3% or 587.98 points to close at 46,067.58. Notably, 22 components of the 30-stock index ended in positive territory, while eight finished in negative territory.
The major gainer of the index was NIKE Inc. NKE. The stock price of the giant online retailer was up 3.3%. Nike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 22,694.61, climbing 2.2% or 490.18 points driven by the strong performance of technology bigwigs. The S&P 500 appreciated 1.6% or 102.21 points to finish at 6,654.72. Out of the 11 broad sectors of the broad-market index, nine ended in positive territory, while two were in negative territory.
The Technology Select Sector SPDR (XLK), the Energy Select Sector SPDR (XLE), the Consumer Discretionary Select Sector SPDR (XLY), the Industrials Select Sector SPDR (XLI) and the Materials Select Sector SPDR (XLB) fell 2.4%, 1.4%, 2.2%, 1% and 1.6%, respectively.
The fear gauge, the CBOE Volatility Index (VIX) plunged 12.1% to 19.03. A total of 18.2 billion shares were traded on Monday, lower than the last 20-session average of 20.2 billion. The S&P 500 recorded seven new 52-week highs and 14 new 52-week lows. The Nasdaq Composite registered 91 new 52-week highs and 120 new 52-week lows.
Moreover, the small-cap benchmark — the Russell 2000 — climbed 2.8% to reach at 2,461.42.
On Oct. 12, President Donald Trump wrote on Truth Social “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it.”
Vice President JD Vance told Fox News that the Trump administration is ready to negotiate with China if Beijing is “willing to be reasonable.” However, he also hinted that China’s unwillingness may force the U.S. government to make more stringent moves.
In an interview with the Fox Business Network, U.S. Treasury Secretary Scott Bessent said that the upcoming meeting between President Trump and Chinese President Xi Jinping in South Korea has not been cancelled as both sides are eager to deescalate trade tensions.