U.S. stocks stage a large relief rally on Monday.
The Dow and broader U.S. stock market rallied sharply on Monday, as investors cheered vaccine progress and news of a TikTok partnership with Oracle.
All of Wall Street’s major indices reported gains at the start of the week, with the Dow Jones Industrial Average (DIA) rising 326.81 points, or 1.2%, to 27,992.45.
The broad S&P 500 Index (SPY) of large-cap stocks gained 1.3% to close at 3,383.48. All 11 primary sectors reported gains, with real estate leading the pack. Information technology was also among the top performers, followed by healthcare and materials.
Surging tech shares propelled the Nasdaq Composite Index (QQQ) sharply higher. The benchmark surged 1.9% to finish at 11,056.65.
The Chicago Board Options Exchange Volatility Index (VXX), commonly known as the VIX, backtracked on Monday. The so-called “investor fear index” bottomed at 25.38 on a scale of 1-100 where 20 represents the historical average. VIX would eventually settle down 4.7% at 25.61.
Markets rallied on Monday after AstraZeneca reported that its late-stage COVID-19 vaccine trials had resumed. Meanwhile, Oracle confirmed that it had entered into an agreement with ByteDance to keep TikTok running in the United States.
The Trump administration has threatened to ban the popular video-sharing app on Sept. 20 over national security concerns.
The Final Word: Stocks are coming off their first back-to-back weekly slides since May, which triggered the fastest-ever correction for the Nasdaq. With tech shares rebounding on Monday, the major indices could be headed for recovery sooner rather than later.