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© Reuters.
By Yasin Ebrahim
Investing.com – The Dow made a strong start to the week on Monday as the reopening of certain parts of the global economy lifted investor sentiment and triggered a rally in financials as U.S. bond yields surged.
The Dow Jones Industrial Average rose 1.51%, or 359 points, the S&P 500 gained 1.47%, while the Nasdaq Composite added 1.11%.
Some states lifted lockdown restrictions over the weekend, with several others expected to follow suit over the coming days and weeks amid signs the Covid-19 outbreak, which has killed more than 50,000 nationwide, is flattening.
The move prompted investors to ditch safe havens in hope that the reopening will boost activity, triggering a jump in U.S. bond yields, which underpinned a rally in financials, mostly banking stocks.
JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC) and Citigroup (NYSE:C) ended up more than 4%.
Energy also caught a bid, shrugging off a more-than-20% plunge in oil prices on rising fears over storage capacity at a time when the coronavirus pandemic continues to hurt demand.
But technology stocks lagged the broader move higher, even as several FAANG names are set to report earnings this week, with Google-parent Alphabet (NASDAQ:GOOGL) reporting tomorrow, Facebook (NASDAQ:FB) reporting on Wednesday, Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) on Thursday.
Apple ended the day roughly flat after the tech giant said it was delaying a ramp-up of production by about a month amid the Covid-19 hit to consumer demand and supply chain operations.
Twitter (NYSE:TWTR), meanwhile, closed nearly 5% higher ahead of its quarterly numbers due Thursday after Mizuho upgraded the social media company to neutral from underperform on expectations that most of the coronavirus impact was priced in.
General Motors (NYSE:GM) was up 2.5% even as the automaker suspended its dividend and share repurchase program in a bid to conserve cash.
Tesla (NASDAQ:TSLA), meanwhile, rallied nearly 10% with investors seemingly confident the company is set to deliver a strong quarterly report on Wednesday.
The rally on Wall Street comes as the $310 billion refill of the small business lending program, or Paycheck Protection Program, went into effect today to help small businesses struggling from the economic fallout from Covid-19.
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