Associated Press
NEW YORK— Stocks jumped Monday, with gains again accelerating in the last hour of trading, as markets around the world continue to claw back from a sharp tumble earlier this month.
The Standard & Poor’s 500 powered to a third straight gain, and the index has erased about two-thirds of its 10 percent loss since setting a record a month ago.
Analysts said the key reason for Monday’s gain was a drop in Treasury yields, which have been at the center of worries for stock investors in recent weeks, but some were still surprised by how much the market climbed.
The S&P 500 gained 32.30 points, or 1.2 percent, to 2,779.60, with telecoms and technology stocks leading the way. For the second straight day, the market turned higher as the day wore on. That’s an encouraging sign to investors who see the last hour of trading as being dominated by the “smart money.”
The Dow Jones industrial average rose 399.28, or 1.6 percent, to 25,709.27, and the Nasdaq composite gained 84.07, or 1.1 percent, to 7,421.46. All three indexes are back within 3.4 percent of their record highs.
“I think you can very confidently say the worst is over for now,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “The concern I have is that it’s recovering too quickly. Today’s rally has been very surprising.”
Frederick said he saw few reasons for a big move higher in stocks Monday, with no big-ticket earnings or economic reports on the calendar.
If the market continues rising at this rate, it could hit record heights again in the next couple of weeks.
“And then we’d be vulnerable to another correction, so I’d prefer it to slow down a bit here,” Frederick said.
What triggered the first correction, which is what traders call a 10 percent drop in stock prices, was fear that interest rates are due to march much higher, and quickly.
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