Wall Street ended up on a high in the last session of a volatile January that plunged the Nasdaq into correction territory.
According to final results at the close, the Dow Jones index gained 1.17% to 35,131.86 points. The technology-dominated Nasdaq jumped 3.41% to 14,239.88 points. The S&P 500 rose 1.89% to 4,515.55 points.
“We extended the rally that took place on Friday. Two factors played out: first the market was oversold, then investors are starting to focus on corporate results now that the Fed is out of sight,” commented Peter Cardillo of Spartan Capital Securities.
On Friday, the indices had begun to jump while since the beginning of the year, the markets have been shaken by the Fed’s rate hike projects.
Central Bank Chairman Jerome Powell on Wednesday confirmed a likely rate hike for March and markets on average believe the Fed will make at least five hikes in overnight borrowing costs.
At the opening on Monday, the Dow Jones was down 4.4% over the month, the S&P 500 by 7% and the Nasdaq by 12%.
But stocks quickly bounced back into positive territory after a hesitant open and all eleven S&P sectors were in the green at the close, Consumer Products (+3.31%), Information Technology (+1, 97%) and communication services (+1.89%) in the lead.
Investors will be interested in corporate results, many on the program this week after the good announcements from Apple (+2.61% at the close) and Microsoft (+0.88%) which had started to generate a rebound on the Nasdaq over the weekend.
Alphabet (Google, +1.81% to $2,713.97) and General Motors (+4.98%) are expected on Tuesday, Meta (Facebook, +3.83%) on Wednesday, Amazon (+3.89%), Merck (+0.67%) and Ford (+3.94%) on Thursday.
And on Friday, the US Department of Labor will release unemployment and job creation figures for January.
The title of the manufacturer of high-end electric vehicles Tesla soared spectacularly (+ 10.68% to 936.72 dollars), after favorable analyst ratings.
Netflix also quickly regained lost ground (+11.13% to 427.14 dollars). One of its executives, Reed Hastings, acquired $20 million worth of securities when it fell. The streaming service’s stock had nearly halved since its last high in November.
Boeing was sought (+ 5.07% to 200.24 dollars) after the announcement that the American aircraft manufacturer received a mega-order from Qatar Airways for cargo versions of its new wide-body 777x.
During a visit by the Emir of Qatar to the White House, the company undertook to buy 34 777-8 Freighter and put an option on 16 additional aircraft.
The contract is worth more than $20 billion at list price and represents the largest order the manufacturer has ever received for cargo planes.
Qatar Airways has also signed a letter of intent to order 25 single-aisle 737 MAX in its largest version, the 737-10, with an option for 25 more. The commitment amounts to nearly $7 billion at list price.
Investors also reacted badly to the takeover of the American company Citrix Systems, which specializes in cloud computing solutions (-3.42% to 101.94 dollars) by investment companies Vista Equity Partners and Elliott Investment Management. for $13 billion.
Sony shares listed in the United States rose 4.51% to 111.66 dollars. The Japanese group will buy the American video game publisher Bungie, creator of the “Halo” franchise, for 3.6 billion dollars. This new episode of the great maneuvers that the industry is experiencing comes just days after that of the acquisition of Activision Blizzard by Microsoft.
Yields on 10-year Treasury bills were stable at 1.77% from 1.76% at the previous close.