Dow soars 586 points in best day since March as the reopening trade recovers
- The Dow Jones soared 586 points and had its best day since March on Monday.
- The surge higher was driven by sectors tied to the physical reopening of the economy, like energy and industrials.
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US stocks surged on Monday with the Dow Jones having its best day since March, jumping nearly 600 points.
The rally was driven by the reopening trade, which has mostly stumbled in June as large-cap technology stocks began to outperform. The best performing sector on Monday included energy, basic materials, and financials.
Investors' fears over the Federal Reserve's surprise hawkishness last week subsided in Monday's trading session. The Fed's interest rate dot plot and comments about rising inflation helped spur a three-day sell-off last week, with the reflation trade quickly unraveling as stocks in the energy, financials, and industrial sectors sold off sharply.
Here's where US indexes stood at the 4:00 p.m. ET close on Monday:
- S&P 500: 4,224.77, up 1.40%
- Dow Jones industrial average: 33,876.97, up 1.76% (586.89 points)
- Nasdaq composite: 14,141.48, up 0.79%
While stocks moved higher on Monday, cryptocurrencies experienced a sharp decline. Bitcoin fell more than 14% over the weekend as China continued to crackdown on mining operations in the country.
But the decline in bitcoin didn't stop MicroStrategy from buying more of the cryptocurrency. The company announced it purchased an additional $489 million worth of bitcoin, bringing its total holdings to more than 105,000 bitcoin.
Bitcoin's price weakness spurred a bearish technical signal over the weekend, known by many as a "death cross," as the 50-day moving average has crossed below its longer-term 200-day moving average. The death cross signals that there could be more downside ahead for bitcoin.
Hedge fund manager Bill Ackman's $4 billion mega-SPAC $4 deal to buy 10% of Universal Music was accepted over the weekend, and Ackman indicated that he is now on the hunt for two more multi-billion dollar deals.
Shares of ContextLogic jumped as much as 22% on Monday as Redditors highlight it as a meme-stock play for the week.
Dogecoin has fallen by more than 70% from its peak in May, and the mysterious dogecoin whale that owns 28% of the cryptocurrency has seen its holdings value drop to $8 billion from a peak of $24 billion in May.
Oil prices were broadly higher. West Texas Intermediate crude was up 2.7%, to $73.56 per barrel. Brent crude, oil's international benchmark, jumped 2%, to $74.93 per barrel.
Gold rose 0.8%, to $1,783.20 per ounce.