Wall Street began a busy week of corporate earnings with a broad surge Monday, the latest reversal for a market that has been inching between gains and losses in recent weeks.
Almost all of the equities in the benchmark S&P 500 index gained, with technology and telecom sectors leading the way. Apple gained 2.9%, while Google’s parent business gained 3.7%. Bond yields have fallen from multiyear highs, relieving some of the pressure on equities. The yield on the 10-year Treasury, which influences mortgage rates, held steady at 4.02%. The yield on the 2-year Treasury, which tends to track expectations for future Federal Reserve action, fell to 4.46% from 4.50% late Friday.
U.K. government bonds rallied following news that the country’s new Treasury chief was abandoning nearly all of a series of unfunded tax cuts that had upset markets. Markets in Europe closed broadly higher and most markets in Asia gained ground. The price of U.S. crude oil edged lower.
The broader market is coming off an extremely volatile week that closed with most major indexes in the red. Including Monday, the S&P 500 has posted gains or losses of 2% or more six times so far this month.
The S&P 500 rose 94.88 points to 3,677.95. The Dow gained 550.99 points to 30,185.82, while the Nasdaq added 354.41 points to 10,675.80.
Traders also bid up small company stocks. The Russell 2000 index rose 53.35 points, or 3.2%, to 1,735.75.
The indexes remain sharply lower from where they were at the beginning of this year. The S&P 500 and Russell are down more than 22%, while the Nasdaq has slumped more than 31%. The Dow is off nearly 17%.
Several major airlines, which could see some turbulence in their finances if inflation hits consumers’ travel spending, will report earnings this week. United Airlines releases its results on Tuesday, followed by American Airlines on Thursday.
Several companies gained ground Monday on a mix of specific corporate news. Oil producer Continental Resources jumped 8.7% after saying it will be taken private as part of a deal with founder Harold G. Hamm.
Investment bank Credit Suisse rose 3.6% after agreeing to pay $495 million as part of a settlement in a dispute with the U.S. over mortgage-backed securities.