Dow Jumps 400 Points After Worst Week In Two Years
The Dow Jones Industrial Average climbed more than 400 points Monday, extending the recovery that began Friday after the stock market’s lowest performing week in two years.
Energized by low stock prices coming off the more than 10 percent drop from its January high point, investors pushed the Dow to its best two-day gain — 741 points — since August 2015.
The S&P 500 rose 1.4 percent Monday with energy and financials as the top performing sectors.
The massive sell off began Feb. 2 when anxieties about the fed’s impending interest rate hike led to a degree of market volatility unseen in years.
Analysts remain divided regarding what caused the unprecedented movement and whether the market has reached bottom.
“This looks like a corrective phase rather than the start of a bear market,” Katie Stockton, founder of Fairlead Strategies, told CNBC. “The biggest risk to the marker prior to this sell-off was sentiment and we’ve seen that go from overly bullish to overly bearish.”
Monday’s performance came as President Donald Trump’s administration released a $4.4 billion infrastructure blueprint. The plan, which calls for $200 billion in federal funding, may have sparked some optimism among investors.
“It is no surprise that Trump’s agenda will provide a great deal of fiscal stimulus from tax cuts, and more spending on defense and infrastructure,” Ed Yardeni, president and chief investment strategist at Yardeni Research, told CNBC. “The jury is still out on whether all that fiscal stimulus will revive inflation. “[We] don’t think so, but the Bond Vigilantes are saddling up.”
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