Markets Right Now: Stocks surge; Dow industrials gain 400

Markets Right Now: Stocks surge; Dow industrials gain 400

Technology companies and banks, some of the biggest winners over the past year, rose up the most.

"You nearly could hear a collective sigh of relief on Friday when the market closed higher on the day - and ahead of a weekend at that", said John Stoltzfus, the chief investment strategist at Oppenheimer Asset Management, in a note on Monday. Energy companies got some relief as oil prices turned higher.

The gains in afternoon trading Monday came after the market slumped into a "correction" for the first time in two years last week. Whether the recent sell-off is a short-term hiccup or the end of the longest bull market in decades is still unclear, they said. As a result, the investors have their eyes on the bond market regarding interest rates with the yields dipping during the morning trade, Tuesday.

Due to possibility of increased interest rates, the markets have been on the edge over the past week.

"The catalyst behind this bull market up until maybe the a year ago or so has just been the ability of this economy to grow, even if it's very sluggishly (.) without creating any negative consequences for the financial markets", he said.

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The S&P 500 had the best two day win streak since June 2016, gaining 36.39 points, or 1.39 percent, to 2,655.94. The S&P 500, meanwhile, posted moves greater than 1 percent in four-of-five trading days last week. The Nasdaq Composite dropped 39.96 points, or 0.57 percent, to 6,942.01. DowDuPont and Apple were the best-performing stocks in the Dow, advancing 3.4 percent and 4 percent, respectively.

It took just nine days for stocks to plunge 10 percent from their latest peak, which was reached on January 26.

Last week's correction was worsened by a scramble out of exchange-traded notes that were created to profit from calmer market activity. The index rose 1.5 per cent Friday but still wound up with its worst weekly loss in more than two years.

U.S. crude oil dropped 1 percent to settle at $61.15 a barrel, while Brent fell 1.1 percent to $64.81. But it's happened six times in the last seven trading days, and eight times since the January 26 peak.

Apple fell $3.49, or 2.1 percent, to $159.54 and Facebook lost $5.13, or 2.8 percent, to $180.18.

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Investor attention is focused on the question of inflation.

OIL: Benchmark U.S. crude fell 29 cents to $59.00 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, dropped 16 cents to $62.43 per barrel in London.

Oil prices have dropped since reaching long-time highs in late January, when US crude peaked at $66 a barrel.

Defense contractor General Dynamics will spend nearly $7 billion to buy internet technology company CSRA.

"It is no surprise that Trump's agenda will provide a great deal of fiscal stimulus from tax cuts, and more spending on defense and infrastructure", Ed Yardeni, president and chief investment strategist at Yardeni Research, told CNBC. It gained 9 cents on Monday. The Dow has had two 1,000-point drops this week.

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Twenty-First Century Fox picked up 66 cents, or 1.9 percent, to $36.40 after The Wall Street Journal reported that cable and internet provider Comcast is still interested in buying Fox's entertainment divisions and could make another offer.

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