Bulletin
Investor Alert

New York Markets Open in:

Market Snapshot Archives | Email alerts

March 5, 2018, 4:28 p.m. EST

Dow snaps four-session losing streak in broad-based market rally

All 11 of S&P 500 subsectors close higher, led by utilities, financials

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Industrial Average (DJIA)
  • X
    S&P 500 Index (SPX)
  • X
    NASDAQ Composite Index (COMP)

or Cancel Already have a watchlist? Log In

By Sue Chang and Mark DeCambre, MarketWatch


AFP/Getty Images
China steel: Trade wars remain a worry for investors.

U.S. stocks closed higher Monday, with the Dow Jones Industrial Average bouncing back from a four-session losing streak, as investors looked beyond the threat of a global trade war and instead focused on positive economic data.

A technical rebound following a stretch of weakness for equities also helped to support broad market gains.

What did the main benchmarks do?

The Dow /zigman2/quotes/210598065/realtime DJIA +1.54% bounced back from an earlier decline to rise 336.70 points, or 1.4%, to 24,874.76.

The S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.62% rose 29.69 points, or 1.1%, to 2,720.94, with all 11 subsectors finishing higher, led by utilities and financials. The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.31% added 72.84 points, or 1%, to 7,330.70.

Last week, stocks logged hefty losses, with the Dow dropping 3% and notching its fourth-straight-session loss on Friday. The S&P 500 shed 2% for the week and the Nasdaq declined 1.1%.

Read: Trade-war fears cast shadow over stock market

Plus: Worried about a trade war? Stock-market investors should think small

What drove the markets?

Rattling some investors was news that Sunday’s Italian election is expected to end in a hung parliament, as populist euroskeptic parties made a better showing than forecast. That is seen as signaling a protracted period of political uncertainty for the eurozone’s third-biggest economy.

Read: Italy’s election resulted in political gridlock as expected—what that means for stocks

But in Germany, Social Democrats voted to support a grand coalition government. That means Chancellor Angela Merkel will serve a fourth term and the country is set to have a government after more than five months of uncertainty.

Read: Italy’s election, Germany’s coalition highlight fragile EU

Fears over the potential for global trade war continued after President Donald Trump said last week he will impose a 25% tariff on steel imports and a 10% tariff on aluminum. Those metals are used for products such as airplanes and beverage containers, and tariffs raise fears of an increase in selling prices or reductions in profits for U.S. corporations in those industries.

Read: Trump’s tariffs will hurt the 6.5 million U.S. workers at steel-consuming manufacturers

Trump continued to tweet on the subject over the weekend, at one point threatening to slap a tariff on European autos, should the European Union try to retaliate to the new tariffs. He tweeted Sunday evening that the U.S. is “on the losing side of almost all trade deals. Our friends and enemies have taken advantage of the U.S. for many years.”

Trump’s trade adviser, Peter Navarro, on Sunday blamed the media for hyping the possibility of a trade war. Trump on Friday had tweeted that “trade wars are good, and easy to win.”

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
30,046.24
+454.97 +1.54%
Volume: 436.45M
Nov. 24, 2020 5:11p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,635.41
+57.82 +1.62%
Volume: 3.19B
Nov. 24, 2020 5:11p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
12,036.79
+156.15 +1.31%
Volume: 5.88M
Nov. 24, 2020 5:16p
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.