Stocks rally to end a dismal January, but S&P 500 still posts worst month since March 2020; European stocks climb as markets wrap up volatile month of trading
Stocks bounced for a second day Monday, as investors wrapped up a rough January by snapping up some of the tech shares that have been battered all month.
Despite the two-day relief rally, the S&P 500 was still headed for its worst month since the onset of the pandemic, as investors brace for the Federal Reserve to raise interest rates multiple times this year starting soon.
The S&P 500 rose 1.2% on Monday, cutting its loss for the month to 5.85%. That’s still its worst month since the 12.5% loss in March 2020 and its worst January since 2009. The Dow Jones Industrial Average added 211 points, or 0.6%, cutting its loss for the month to just under 4%, as it benefitted from its underweighting in tech shares.
The tech-heavy Nasdaq Composite rose 2.4%, adding to its 3% comeback Friday. The index is still down 9.8% for January, also its worst month since March 2020.
Netflix and Spotify surged more than 10% and 12%, respectively, on Monday upgrades from Citi. The firm cited this month’s pullback as an attractive time to buy. Netflix is still down nearly 30% this month, and Spotify is off by 17%.
Tesla, which is down 12% in January, gained more than 8% on Monday after Credit Suisse upgraded the electric car maker’s stock. The firm said Tesla had been unfairly caught up in the market decline. Other EV makers rose too, with Rivian and Lucid adding about 11% and 6%, respectively.
The pan-European Stoxx 600 index gained 0.8% by late-afternoon trade, with tech stocks jumping 3% to lead gains as most sectors and major bourses entered positive territory. The benchmark is on pace for its worst month since October 2020, however, as investors reassess their allocations amid fears over higher interest rates.
At the bottom of the European blue chip index, French care home operator Orpea slid 7% after firing its CEO following allegations of patient abuse.
Source: CNBC, Investing.com