U.S. stocks staged a dramatic comeback from a massive selloff on Monday after President Donald Trump said that the war against Iran could end soon. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.5% or 239.25 points, to end at 47,740.80 points, after losing as much as 900 points at its session low.
The S&P 500 rose 0.8%, or 55.97 points, to finish at 6,795.99 points. Healthcare and industrial stocks were the biggest gainers, while energy stocks fell.
The Health Care Select Sector SPDR (XLV) gained 1%. The Industrials Select Sector SPDR (XLI) rose 0.6%. The Energy Select Sector SPDR (XLE) lost 0.4%, while the Financials Select Sector SPDR (XLF) fell 0.5%. Nine out of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 1.4%, or 308.27 points, to close at 22,695.95 points.
The fear gauge, CBOE Volatility Index (VIX), was down 13.53% to 25.50. Decliners outnumbered advancers on the NYSE by a 1.06-to-1 ratio. On the Nasdaq, a 1.26-1 ratio favored advancing issues. A total of 22.41 billion shares were traded on Monday, higher than the last 20-session average of 19.99 billion.
On the NYSE, there were 105 new highs and 204 new lows. On the S&P 500, there were 4 new 52-week highs and 9 new lows.
Stocks Rebound After Trump’s Announcement
All three major indexes made a late rebound after Trump said during an interview that the war against Iran could be reaching an end soon. The President said that Iran has “no navy, no communications,” and no air force and the war could end well ahead of his earlier timeframe of four to five weeks.
This somewhat helped boost investors’ morale, helping stocks to bounce back from their earlier losses. The S&P 500 and Nasdaq had lost as much 1.5% each at their session lows.
West Texas Intermediate crude fell to $81 per barrel following Trump’s comments. It had reached $119 per barrel on Sunday night. International benchmark Brent crude also fell to $84 a barrel.
Helping the broader market on Monday were semiconductor stocks. Shares of Sandisk Corporation (SNDK) surged 11.6%, while NVIDIA Corporation (NVDA) gained 2.7%. Shares of Broadcom, Inc. (AVGO) jumped 6.6%. NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
No major economic data was released on Monday.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report Sandisk Corporation (SNDK): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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