Following the Dow Jones Industrial Average’s eighth consecutive losing week, investors snapped up beaten-down shares such as banks, causing stocks to rebound on Monday.
The blue chip index rose 618.34 points to 31,880.24, nearly 2% higher. The S&P 500 rose 1.9 percent to 3,973.75, recouping some of its losses after falling into bear market territory on Friday, down more than 20% from its high. The Nasdaq Composite Index increased 1.6 percent to 11,535.27 points.
Analysts say it’s unclear how long the three indexes can maintain their current levels. Investors have been in this situation before, welcoming small relief rallies during this year’s turmoil but unsure when the rebound will be strong enough to reverse the months-long downtrend.
JPMorgan gained 6.2 percent after the bank said it expects to meet key return targets earlier than expected, thanks to rising interest rates boosting its lending business. Citi gained 6% as the benchmark 10-year Treasury yield recovered from last week’s low. Wells Fargo and Bank of America both increased by more than 5%.
Following a busy few days of earnings for retailers, Ross Stores and TJX were among the top gainers on Monday, rising 9.6 percent and 4.2 percent, respectively. Costco, Dollar General, Nordstrom, and Macy’s are among the retailers set to release their results this week. Investors will be watching to see if high-level demand remains strong and if some of last week’s weakness can be reversed.