Investing.com - Stocks surged Monday, led by financials on the back of higher U.S. Treasury yields as upbeat manufacturing data from the U.S. and China eased investor worries about slowing global growth.
The Dow Jones Industrial Average rose 1.27%, the S&P 500 added 1.16%, while the Nasdaq Composite rallied 1.29%.
Financials, mostly banks, racked up gains as 10-year bond yields rose as better-than-expected manufacturing data from China and the U.S. prompted traders to bet global growth is set for a soft landing.
Rising government bond yields boost banks' ability to generate net interest income.
The Financial Select Sector SPDR (NYSE:XLF) ETF rose 2.5%, with JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Bank of America (NYSE:BAC) closing more than 3% higher.
The upbeat manufacturing data overshadowed an unexpected decline in U.S. retail sales, led by a slump in transactions for building materials and garden supplies.
Industrials also underpinned the broader market on improving sentiment on trade after China reportedly suspended U.S. tariffs ahead of trade talks in Washington set for later this week.
U.S. officials last week said China was warming up to the idea of an enforcement framework, which the Trump administration argues is important to ensure China complies with eventual terms of a trade deal.
Boeing (NYSE:BA) and Caterpillar (NYSE:CAT), bellwethers of trade given their large international exposure, ended the day higher and contributed 100 points to the Dow's 330-point gain.
Beyond trade, energy stocks were buoyed by a surge in U.S. oil prices to a nearly-five-month high thanks to strong economic data out of China, the world's largest energy consumer.
But defensive stocks proved an exception to the rally, with real estate, consumer staples and utilities shares ending in the red.
In other company news, ride-share company Lyft (NASDAQ:LYFT) fell sharply on its second day of trading, closing at $69.01, well below its IPO price of $72.
Lyft was the first of a number of gig-economy companies planning to go public this year, with Uber and Pinterest expected to debut next.
Wynn Resorts (NASDAQ:WYNN), up 8.4%, led casino stocks higher on Monday as revenues from Macau's gambling region in March met analysts' expectations, signaling the market remains resilient.
Top S&P 500 Gainers and Losers Today:
Wynn Resorts (NASDAQ:WYNN), IPG Photonics (NASDAQ:IPGP) and Lincoln National (NYSE:LNC) were among the top S&P 500 gainers for the session.
Abiomed (NASDAQ:ABMD), Kellogg (NYSE:K) and Hormel Foods (NYSE:HRL) were among the worst S&P 500 performers of the session.