Stocks on Wall Street Rise Monday 09/28 08:55
U.S. stocks are rallying in early Monday trading, as Wall Street claws back
some of its sharp and sudden September losses.
NEW YORK (AP) -- U.S. stocks are rallying in early Monday trading, as Wall
Street claws back some of its sharp and sudden September losses.
The S&P 500 was 1.4% higher after the first 10 minutes of trading, following
up on its first four-week losing streak in more than a year. Momentum has been
ultra-quick to shift recently, though, with stocks veering in several
directions through the day. The market has had several early gains quickly
The Dow Jones Industrial Average was up 402 points, or 1.5%, at 27,576, as
of 9:40 a.m. Eastern time, and the Nasdaq composite was 1.6% higher.
One of the big worries hurting stocks this month has been fears that the
market climbed too high and got too expensive through its powerful summer
rally. But several companies announced big mergers and acquisitions, which show
that at least some CEOs see value at current prices.
Devon Energy rose 3% and WPX Energy climbed 4.7% after they agreed to
combine in an all-stock deal.
Cleveland-Cliffs jumped 8.9% after it said it will buy the U.S. business of
steelmaking and mining giant ArcelorMittal for $1.4 billion. ArcelorMittal's
U.S.-listed stock rose 9.4%.
Another big gainer was Uber, which rose 4.2% after it won an appeal that
will allow it to keep operating in London.
The market's gains were widespread, with nearly all the stocks in the S&P
500 higher. Big Tech stocks, which have been getting the most criticism for
getting too expensive following their strong pandemic run, were also higher.
Apple rose 1.5%, Microsoft gained 1.8% and Amazon rose 1.6%. These companies
are massive, which gives their stock movements much more sway over the S&P 500
and broad-market indexes than other stocks.
Monday morning's rebound for stocks trims September's loss for the S&P 500
to 4.6%. Several factors have been behind the abrupt drop, which halted what
had been a remarkable rise on Wall Street that began in late March.
Many of those factors are still in place, which means analysts along Wall
Street say the tumultuous trading may not be over.
Investors are still waiting for Congress to deliver another round of support
for the economy after extra unemployment benefits for workers and other
stimulus expired. Tensions are still rising between the United States and
China. And the upcoming U.S. presidential election still means plenty of
uncertainty for investors, from what it could do to corporate tax rates to how
long markets will need to wait until after Election Day to discover the winner.
Countering those uncertainties, though, is the tremendous support that the
Federal Reserve is continuing to provide markets and the economy. So are
investors' rising hopes that a vaccine for COVID-19 could become available as
soon as early 2021.
European stock markets rallied strongly, with the Germany DAX returning 2.9%
and the French CAC 40 rising 2.2%. The FTSE 100 in London added 1.7%.
In Asia, Japan's Nikkei 225 rose 1.3%, as did South Korea's Kospi. The Hang
Seng in Hong rose 1%, and stocks in Shanghai slipped 0.1% after China's
statistical bureau reported that industrial profits rose 19% in August from a
year earlier, as the economy recovered from the pandemic downturn.
The yield on the 10-year Treasury dipped to 0.65% from 0.66%.