NEW YORK: Major US stock indices ended sharply higher on Monday (Oct 16) as investors were optimistic about the start of earnings season, while transport and small-cap shares also jumped.
The Dow Jones Industrial Average rose 314.25 points, or 0.93%, to 33,984.54, the S&P 500 gained 45.85 points, or 1.06%, to 4,373.63 and the Nasdaq Composite added 160.75 points, or 1.2%, to 13,567.98.
Market participants were monitoring the Israeli war in Gaza, but appeared to be taking more of a risk-on stance on Monday, with safe-haven gold prices down.
The Cboe Volatility index was lower, while the Dow registered its biggest daily percentage gain in about a month. Also, the economically sensitive Dow Jones transport average jumped 1.9% in its biggest one-day percentage increase since late July, and the Russell 2000 small-cap index rose 1.6%.
Consumer discretionary led gains among S&P 500 sectors, although all of the sectors were higher on the day.
Charles Schwab shares jumped 4.7% as the brokerage posted a smaller-than-expected drop in quarterly profit.
Quarterly results from large banks Goldman Sachs, Bank of America, Morgan Stanley, pharmaceutical giant Johnson & Johnson, electric vehicle maker Tesla and video-streaming pioneer Netflix are due this week.
Third-quarter earnings for S&P 500 companies are estimated to have increased 2.2% year-over-year, up from an estimated increase of 1.3% a week earlier, according to LSEG data Friday.
“At least for today, this is a market that sees a stronger earnings season, a stronger week in terms of earnings,” said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina.
At the same time, global leaders are trying to make sure that the Middle East conflict “remains contained,” she said.
Lululemon Athletica shares rose to their highest level in almost two years as the Canadian sportswear apparel maker was set to join the S&P 500 index this week, replacing Activision Blizzard. Lululemon shares ended up 10.3%. – Reuters