Stocks jumped on Monday, the first trading day of the month, as markets tried to recover from a brutal week and month ahead of the U.S. presidential election.
The Dow Jones Industrials jumped 511.06 points, or 1.9%, to 27,012.66.
The S&P 500 recovered 54.44 points, or 1.7%, to 3,324.40
The NASDAQ recouped 128.43 points, or 1.2%, to 11,040.02.
The major averages are coming off their worst week since March 20 as coronavirus cases surged, fiscal stimulus negotiations fell apart and as shares of mega-cap tech companies including Apple and Amazon slumped following their quarterly earnings reports.
Those losses led to sharp monthly declines for the major averages. The Dow, S&P 500 and NASDAQ posted their first back-to-back monthly losses since March.
Ahead of Tuesday’s election, Joe Biden holds a substantial national lead over President Donald Trump. The former vice president garnered 52% of support from registered voters versus 42% for the president, according to a NBC News/Wall Street Journal poll from Sunday.
The Senate election could also be crucial for the markets as many key policy shifts including further fiscal stimulus hinge on who holds the majority control.
The major averages hit their session highs on Monday after Institute for Supply Management said its manufacturing index reached a two-year high in October. The market’s comeback came even as England adopted a stay-at-home order to fight the coronavirus.
Prime Minister Boris Johnson announced Saturday England is closing all nonessential businesses for the next four weeks after more than 22,600 weekly Covid-19 cases were reported for the U.K., far higher than its first peak of 4,800 average weekly cases in the spring. People will be ordered to stay at home unless it’s for essential purposes, Johnson said.
The U.S. is also grappling with rising new coronavirus infections. The nation reported 99,321 new Covid-19 cases on Friday, beating its previous record set only a day prior, according to Johns Hopkins University. The top five records in daily cases have all been reported within the last eight days.
Prices for the 10-Year Treasury recovered lost ground, lowering yields to 0.84% from Friday’s 0.87%. Treasury prices and yields move in opposite directions.
Oil prices gained 39 cents at $36.18 U.S. a barrel.
Gold prices improved $11.40 to $1,891.30
