Shares rose on Monday, marking a positive start to the week after the S&P 500 briefly entered the bear market on Friday, a symbolic marker of investor pessimism about the health of the economy. The index still closed the week with its seventh consecutive decline, the longest series of losses since the collapse of Dotcom.
“We’ve seen four consecutive weeks of at least one day in negative 3 percent or more of the S&P 500. These are big changes,” said Liz Young, head of investment strategy at SoFi. “I think it’s natural for the market to see a little relief here and there because of these big days of decline.”
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The S&P 500 jumped about 1.9% in afternoon trading. The Nasdaq index rose 1.5 percent.
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Shares of software company VMware rose more than 20 percent due to reports that Broadcom, the semiconductor giant, is in talks to acquire the company.
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Retailers regained their position on Monday, led by Ross Stores, which performed best in the S&P 500. Its shares rose 10 percent, reversing some of the decline last week amid fears that inflation is dampening consumer enthusiasm. Banks were also ahead of the market after JPMorgan Chase gave an optimistic presentation to investors, raising its revenue forecast for this year. His shares rose 7 percent.
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European stock indices were higher, with Stoxx Europe 600 rising 1% on Monday. The euro rose 1% against the dollar after Christine Lagarde, president of the European Central Bank, wrote in a blog post that high inflation could force the central bank to raise interest rates at its July meeting.
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Asian markets were mixed, with Hong Kong’s Hang Seng down 1.2 percent, China’s CSI 300 down 0.6 percent and Japan’s Nikkei 225 up 1 percent.
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