The US stock market rose sharply in early trading on Monday as Wall Street tried to capitalize on the strong performance of last week and get rid of the unfavorable factors caused by the continued rise in new cases of pneumonia.
The Dow Jones Industrial Average rose 370 points or 1.4%, while the S&P 500 index rose 1.4%. The high-tech Nasdaq Composite Index rose 1.5%, a record high.
There are several reasons for the bullish start this week:
In pre-market trading on Monday, stocks are closely related to the economic reopening. Carnival Corporation, Royal Caribbean and Norwegian Cruise Line have all gained more than 2%. American Airlines and Delta Air Lines also rose nearly 2%. Shares of retailer Gap have also risen.
M&A transactions also boosted market sentiment. Warren Buffett made his first major deal in this year’s market turmoil, and Berkshire Hathaway bought natural gas transmission and storage assets from Dominion Energy for about $10 billion , Which includes debt. Dominion Energy rose 5% in pre-market trading. Uber’s stock price rose after the company said it would acquire Postmates, a food delivery app, for an all-stock transaction valued at $2.65 billion.
The largest technology companies also led the gains, with Apple, Amazon, Microsoft and Google parent company Alphabet all rising more than 1%. The Nasdaq-100 (Nasdaq-100) (up 1.5% on Monday, making it more than 20% up in 2020).
The mainland stock market soared and the Shanghai Composite Index rose more than 5% because the country’s economy continued to open after the coronavirus outbreak.
Starting in the second half of the year, inventories began to grow. The Dow Jones index and the S&P 500 index rose 3.3% and 4% respectively last week, while the Nasdaq index rose 4.6% at the time. Last week the market also summarized the best quarterly performance in decades. The Dow Jones Index rose more than 17% in the second quarter, while the S&P 500 index rose nearly 20% during this period. The Nasdaq index rose by 30.6%.