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Investing.com – The Dow rallied Monday, led by energy on surging oil prices and signs the economic recovery remains intact as ongoing dialogue among U.S. lawmakers keeps hopes for further fiscal stimulus alive.
The Dow Jones Industrial Average rose 1.35%, 375 points. The S&P 500 was up 1.48%, while the Nasdaq Composite gained 1.93%.
Energy rose 2% to lead the broader market higher as oil prices rose on fears of supply disruptions. Tropical storm Delta is on a path to disrupt the U.S. gulf coast.
Occidental Petroleum (NYSE:OXY), Valero Energy (NYSE:VLO) and TechnipFMC PLC (NYSE:FTI) were among the biggest gainers in energy.
Tech also led the move higher as as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which together make up a quarter weighting of the S&P 500, were up more than 1%.
In other tech news, DocuSign (NASDAQ:DOCU) surged nearly 5% after Morgan Stanley upgraded the stock to overweight from equal weight, citing strong fundamentals.
Financials, mostly banks – ahead of their quarterly earnings expected next week – were pushed higher by rising bond yields as the United States 10-Year rose to its highest levels since August.
JPMorgan Chase (NYSE:JPM), and Bank of America (NYSE:BAC) rose more than 1%, while Citigroup (NYSE:C) surged 3%.
The move higher in value stocks like financials was also supported increasing hopes that U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will be able to progress their weekend talks to a deal.
The economy has appeared resilient despite the lack of stimulus as data showed services activity last month topped economists’ estimates.
“The headline PMI improved in September to 57.8 from 56.9. The index remains off the July high of 58.1 (strongest since February 2018), but the details of the data are the most encouraging that we have seen since the recovery began,” Jefferies (NYSE:JEF) said in note.
