U.S. stocks rise sharply on Monday, with Dow leading the rally.
U.S. stocks rose sharply on Monday, with the Dow notching its best performance in a month as investors shifted their focus to second-quarter earnings.
The Dow Jones Industrial Average (NYSEARCA:DIA) surged 320.11 points, or 1.3%, to close art 25,776.59. Twenty-five of 30 index members reported gains, led by Caterpillar Inc., JPMorgan Chase & Co and Goldman Sachs Group Inc.
The broader S&P 500 Index (NYSEARCA:SPY) rose 0.9% to close at 2,784.17. Seven of 11 primary sectors contributed to the rally, with financials and industrials leading the charge. Gains in these sectors offset large declines in utilities and telecommunication services, which fell 3.1% and 1.5%, respectively.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) rose 0.9% to end at 7,756.20.
Implied volatility, as measured by the CBOE VIX (NYSEARCA:VXX) fell on Monday to its lowest level in three weeks. The so-called “fear index” was down more than 5.1% at 12.69.
In commodities, international crude prices rose on Monday after a Chinese refiner dumped U.S. oil imports in favor of Iranian crude. Brent crude, the international benchmark, climbed $1.12, or 1.5%, to $78.23 a barrel on London’s ICE Futures Exchange. Meanwhile, U.S. West Texas Intermediate (WTI) for August settlement rose 25 cents, or 0.3%, to $74.05 a barrel.
The Final Word: Corporate earnings season begin in earnest on Friday with results from some of Wall Street’s largest banks. Earnings for S&P 500 companies are expected to rise 20.7% year-over-year, according to a Thomson Reuters survey. That would mark the second-best quarterly advance since 2010.