Stocks bounced on Monday as investors after eight straight losing weeks for the Dow Jones Industrial Average.
The blue-chip index surged 636 points, or 2%. The S&P 500 gained 1.8%, cutting its losses after falling into bear market territory on Friday, dropping more than 20% from its record. The Nasdaq Composite climbed 1.5%.
The investment strategy analyst at Baird Ross Mayfield said that only time will tell how long they’ll hold these levels.
“This impulse has failed multiple times over the past several weeks,” he told CNBC. “The bar is higher now for sustained positive performance given all of the well-known headwinds” — like slowing growth, elevated valuations, rising rates and recession fears. “Sentiment continues to be a market asset, though some indicators are not showing the extreme level of capitulation often found at market bottoms.”
Thanks to hiking interest rates giving its lending business a boost, JPMorgan soared 7% after the bank said it expects to reach key return targets sooner than planned. Citi and Bank of America also surged 7%, while Wells Fargo added more than 6%.
