- US stocks rally across the board on Monday amid stronger than expected earnings and China monetary policy.
- Dow Jones Industrial Average climbs more than 200 points to 18,034.93.
US stocks rallied on Monday, with the Dow Jones Industrial jumping more than 200 points as better than expected earnings outshined global volatility.
The Dow Jones Industrial Average (DJI) climbed more than 250 points in midday trading. It would subsequently settle on a gain of 208.63 points or 1.17 percent, reaching 18,034.93.
The other major benchmark gauges also posted gains on Monday. The Standard & Poor’s 500 Index (S&P 500) climbed 19.22 points or 0.92 percent to 2,100.40. Gains for the S&P 500 were broad based on Monday, with utilities and technology leading the charge.
The technology-heavy NASDAQ Composite Index rose 62.79 points or 1.27 percent to 4,994.60.
Upbeat earnings and monetary stimulus from China were the main catalysts behind the early-week surge. On Monday the People’s Bank of China announced it was cutting reserve requirements for Chinese commercial banks.
On Wall Street, Morgan Stanley’s (NYSE: MS) first quarter profits and revenues rose faster than forecast, a sign global financial institutions were benefiting from a stronger trading environment.
Shares for Hasbro Inc. (NASDAQ: HAS) jumped 11 percent after the toy maker posted better than forecast profit and revenue.
The Monday rebound followed a global selloff at the end of last week, as the prospect of a Greece default weighed on investor sentiment. Downbeat earnings reports also weighed on the equities market last week. Earnings season shifts into high gear this week with 30 percent of S&P 500 companies scheduled to report profit and revenue numbers, according to FactSet.
Stocks are expected to trade choppily in the coming months, as the large shifts in the commodity and currency markets begin to play out at the corporate level.