Consumer and tech names lead Wall Street rebound: Nasdaq rises 3%+; Dow, S&P also surge – Seeking Alpha

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Rebounding from a dismal showing over the previous couple weeks, stocks surged on Monday, led by consumer and technology stocks. The Nasdaq paced the other major U.S. equity averages, climbing by more than 3%.
The Nasdaq Composite (COMP.IND) ended +3.4%, the S&P 500 (SP500) closed +2.7% and the Dow (DJI) finished +1.9%.
Looking at the closing numbers, the Nasdaq surged 354.41 points, closing out the session at 10,675.80. The Dow climbed 550.99 points to finish at 30,185.82, while the S&P 500 advanced 94.88 points to end at 3,677.95.
The broad-based rally saw all 11 S&P sectors record gains. Consumer Discretionary led the advance, jumping 4.2%. There was also greater-than-3% gains in Communication Services, Info Tech and Real Estate.
“Stocks surged today in a relief rally. A big drop in the U.S. dollar no doubt gave the bulls a boost,” Seeking Alpha contributor Mike Zaccardi said. “Interestingly, Treasury yields actually rose significantly intraday, but the S&P 500 still managed to close near its high [for the session].”
Zaccardi added: “Beaten-up Real Estate stocks and some consumer names performed very well. Still, traders expect volatility ahead with the CBOE VIX Index remaining above 30.”
Going into the session, the S&P 500 and Nasdaq had finished lower in seven of the previous eight session, including a downdraft last Friday that included a greater-than-3% slide in the Nasdaq. The S&P touched a yearly low on Thursday.
The selling had been prompted by worries about inflation and concerns that the Federal Reserve would have to live out its most aggressive interest rate-hiking plans to get price increases under control.
This week started out with a new focus, with investors turning their attention to the quarterly earnings season. Corporate results have been generally strong in the early going, including sturdy reports from Bank of America and BNY. Later this week, results are due out from big names like Tesla, Netflix and Johnson & Johnson.
Looking at the bond market, trading was mixed. The 10-year Treasury yield (US10Y) rose nearly 2 basis point to 4.02%, while the 2-year yield (US2Y) dropped 5 basis points to 4.46%.
The UK continued to be a talking point, with ongoing fragility of the gilt market remaining a potential source of volatility.
“We shouldn’t underestimate how much the relatively small UK market has buffeted global markets in recent weeks,” Deutsche Bank’s Jim Reid said. “The politics are slowly moving in a more market friendly direction by a very sharp sell-off in Gilts on Friday afternoon left a nasty taste as we ended the week.”
Elsewhere on the global scene, news out of China influenced U.S. trading as well. The country’s leader, Xi Jinping, spoke to the Chinese Communist Party Congress over the weekend.
In his remarks, Xi doubled down on the country’s zero-COVID policy but also sketched out plans for a “giant new leap” for the county’s economy. In response, China-based tech names received a bid, adding to Monday’s advance. This included gains from Alibaba, Tencent and Baidu.
In a light day for economic news, the October New York Empire State Manufacturing numbers came in at -9.1. The figure represented a deterioration from the -1.5 reading seen in the previous report.
Among active stocks, Cano Health suffered a massive selling spree following a report that CVS Health had decided not to pursue an acquisition of the company.

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