Stocks notched solid gains Monday as Wall Street clawed back some of its sharp and sudden September losses.
The S&P 500 rose 1.6%, it’s third straight gain. The benchmark index was coming off its first four-week losing streak in more than a year and is on track to close out September with a loss of 4.2% after five months of gains.
The market’s gains were widespread, with more than 90% of the stocks in the S&P 500 higher. Big Tech stocks, which have been getting the most criticism for getting too expensive following their strong pandemic run, did the heaviest lifting. Several companies announced big mergers and acquisitions, which helped to push markets higher.
Optimism that Democrats and Republicans in Congress will reach a deal on another coronavirus relief bill also helped put investors in a buying mood, said Nela Richardson, investment strategist at Edward Jones.
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“There’s real concern about a second wave of infections, concern that we’re just riding the coattails of growth that happened after the economy opened up in May,” Richardson said. “Anything that looks like new lifeblood for the economy is read as a positive stimulus.”
The S&P 500 rose 53.14 points to 3,351.60. The Dow Jones Industrial Average gained 410.10 points, or 1.5%, to 27,584.06. The Nasdaq composite climbed 203.96 points, or 1.9%, to 11,117.53. Traders also bid up smaller company stocks, sending the Russell 2000 small-cap index