Dow stages big reversal Monday, closing up by more than 200 points

The Dow Jones Industrial Average cut its intra-day loss of nearly 500 points on Monday as technology names such as Microsoft rallied amid falling interest rates.

Blue Chip’s average rose 238.06 points, or 0.7 percent, to 34,049.46. The index was down 488 points at the start of the session. The S&P 500 rose 0.6% to 4,296.12. Tech Heavy Nasdaq Composite rose 1.3 percent to 13,004.85.

Concerns of a global economic slowdown amid the spread of the quake in China have cut interest rates. The 10-year Treasury yield returned 2.8 percent.

Tech stocks rallied as rates fell, helping larger averages. Microsoft rose 2.4 percent, the second-largest gainer on the Dow. Google Parent Alphabet also rose about 2.9 percent, and Facebook Parent Meta rose about 1.6 percent before its quarterly earnings reports this weekend.

Twitter rose nearly 5.7% after the social media company’s announcement when it accepted a buyout deal with billionaire Elon Musk, valued at about ً 44 billion.

“We’ve focused on mega-tech stocks this week. It’s great, it’s sold out so much … so you see the money coming in and re-deploying.” Jeff Kilberg, its chief investment officer and portfolio manager, said. Sanctuary Wealth.

Stocks rallied after the Nasdaq Composite bear market plunged last week. The Nasdaq is now 19.8% below its record, while the S&P 500 is back in the correctional zone, 10.8% below its peak. The Dow is coming back on Friday with its worst ODI performance since 2020 and has lost four consecutive weeks. The S&P 500 and Nasdaq fell for three consecutive weeks.

Wall Street is ready for a week of earnings, especially reports from major technology companies. About 160 companies will report on the S&P 500 this week, and all eyes will be on the results of mega-cap tech names, including Amazon, Apple, Alphabet, Meta Platforms and Microsoft.

“This week could easily be a fork in the road to equity. Drivers from the bottom up will either confirm or deny what the challenging macroback drop has given us over the last three weeks,” MKM’s JC O said. Hara said in a note.

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Shares of Coca-Cola rose nearly 1.1 percent after the company reported better-than-expected quarterly earnings before Monday’s bell.

On the downside, fears of a global slowdown have dampened oil prices. WTI crude fell 3.5% on Monday, back below $ 100.

Shares of Energy retreated, including the worst-performing S&P 500 sector on Monday. Chevron fell nearly 2.2%, the second-largest drop on the Dow. Exxon Mobil lost about 3.4%.