Wall Street Stocks Rebounded from a Selloff

On Monday, Wall Street closed on positive grounds. Its main indicator, the Dow Jones, increased by 1.76% or 586.89 points, to 33,876.97. Stocks were influenced by the economic outlook of the Federal Reserve. American Express, Boeing, Chevron, and Travelers were the prominent gainers.

Meanwhile, the selective S&P advanced by 1.40% or 58.33 points, to 4,334.78. 

The Nasdaq composite index, listing the leading technology companies, added 0.79% or 111.10 points, to 14,141.48.

All sectors on Wall Street ended in the green. Among them, a surge of energy companies stood out. Devon Energy expanded by 7.03%. Meanwhile, Occidental Petroleum advanced by 5.39%.

The financial sector hiked by 2.35%, industrial and basic materials added 2.18% and 2.07%, respectively.

Volatility returned to its course 

Last week, the Federal Reserve caught the markets off guard. The central bank stated the possibility of rising rates twice in 2023 and expectations of inflation to increase by 3.4% in 2021. 

The Fed’s comments were followed by St. Louis Federal Reserve Bank President James Bullard’s projections about the initial rate increase, which might come as early as 2022.

Since the central bank meeting on Wednesday, equities of banks, energy firms and other companies sensitive to economic fluctuation have dropped dramatically. 

The last session on the New York Stock Exchange became characterized by volatility. Today it almost returned to its course. 

Today, investors will be watching an appearance by Fed Chairman Jerome Powell before Congress closely. 

According to Paul Hickey from Bespoke Investment Group, investors favoring bullish pace regrouped on Monday after Friday’s decrease.

Bond yields had a volatile day on Monday. Investors tried to determine the rate of inflation and other economic factors. At one point, the 10-year US Treasury yields plummeted to 1.354%. It reached its lowest level since February 24. However, it bounced back and settled at 1.478%.