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U.S. stocks ended sharply higher on Monday, with all three major indexes recording their biggest daily percentage gains since May 27, after the prior session saw massive losses, following concerns over the economy’s health and a fresh round of tariffs announced by President Donald Trump.
The Dow Jones Industrial Average (DJI) jumped 1.3% or 585.06 points, to end at 44,173.64 points.
The S&P 500 rose 1.5%, or 91.93 points, to finish at 6,329.94 points. Communication services, consumer discretionary, materials and utility stocks were the biggest gainers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 1.2%. The Communication Services Select Sector SPDR (XLC) added 1.9%, while the Materials Select Sector SPDR (XLB) rose 1.3%. The Utilities Select Sector SPDR (XLU) gained 1.8%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 2%, or 403.45 points, to close at 21,053.58 points.
The fear gauge CBOE Volatility Index (VIX) was down 14.03% to 17.52. Advancers outnumbered decliners on the NYSE by a 4.48-to-1 ratio. On the NYSE, 136 stocks reached new highs, while 51 hit new lows.
On the Nasdaq, a 3.2-to-1 ratio favored advancing issues as 3,487 stocks hit new highs and 1,090 hit new lows. A total of 15.05 billion shares were traded on Monday, lower than the last 20-session average of 18.37 billion.
Stocks rallied on Monday after incurring sharp losses in the previous session. Friday saw a steep sell-off amid growing concerns over a weakening economy, following fresh data that showed jobs growth slowed more than expected in July and heavy downward revisions to the May and June figures.
Soon after the report was released, Trump fired the Bureau of Labor Statistics boss and said that he would be naming a new head in the coming days.
If this was not enough, Trump signed an executive order on Friday, announcing a fresh round of hefty tariffs on dozens of trading partners of the United States, including Canada, Mexico, India and China.
However, investors shed these fears on Monday to start a fresh week on a high. Tesla, Inc. (TSLA) gained big on Monday. The electric carmaker’s shares rose 2.2% after the company granted CEO Elon Musk 96 million shares worth $29 billion.
Among other companies that gained on Monday was Joby Aviation, Inc. (JOBY) after it announced plans to purchase Blade Air Mobility, Inc.’s (BLDE) passenger operations for up to $125 million. Shares of Joby Aviation surged 18.8%, while Blade Air also soared 17.2%. Blade Air Mobility has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
