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Investing.com – The Dow made a bold start to the week on Monday, racking up a more than a 1,600 point gain as traders cheered signs that measures to curb the Covid-19 pandemic in hard-hit areas like New York and New Jersey were taking shape.
The Dow rose 7.73%, or 1,627.46 points. The S&P 500 gained 7.03% and the Nasdaq Composite surged 7.33%.
The rate of daily new infections and fatalities in New York had held relatively flat for a second-straight day, New York Gov. Andrew Cuomo said on Monday.
New Jersey Gov. Phil Murphy, meanwhile, also echoed optimism, saying his state is beginning to flatten its coronavirus curve, with the pace of new daily cases slowing to about 12% from 24% seen March 30.
Both Cuomo and Murphy, however, stressed that the batted against the Covid-19 was not over. Other parts of the country, including Boston, Detroit, New Orleans, and Philadelphia, are set for an increase in coronavirus infections, which has killed nearly 11,000 in the U.S.
Late buying in stocks was also prompted by a Fox Business report just before the closing bell that said another government stimulus package was in the works to the tune of about $1.5 trillion.
Slowing infections in Italy and Spain also added to hopes that a peak in Covid-19 cases is on the horizon and supported a strong bid in cruise lines stocks, with Royal Caribbean Cruises (NYSE:RCL) closing up 21%, Carnival (NYSE:CCL) up 20% and Norwegian Cruise Line Holdings (NYSE:NCLH) up 18%.
Technology led the broader rally on Wall Street, as investors piled into FANG names and chip stocks.
Energy, meanwhile, rose 5.1% even as oil prices tumbled 8% amid uncertainty over whether OPEC and its allies will agree to cut production.
