Stocks rally on increased risk appetite
U.S. stocks rallied on Monday, with the Dow Jones industrial average at a 13-month high, as the Group of 20's pledge to keep aid flowing to the world's economy boosted investors' appetite for risk.
The agreement from G20 finance ministers and central bankers over the weekend boosted global stocks while pressuring the dollar. A gauge of the greenback against a basket of currencies <.DXY> traded at its lowest in 15 months.
Mining shares jumped on the back of rising metals prices. Freeport MacMoRan Copper & Gold Inc
Central banks around the world are continuing to prop up the economy and support risk taking. There's very little regard for valuation, said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.
It looks to me like a pure risk rally and it is consistent with the G20 comments.
The Dow Jones industrial average <.DJI> rose 190.52 points, or 1.90 percent, to 10,213.94. The Standard & Poor's 500 Index <.SPX> jumped 21.49 points, or 2.01 percent, to 1,090.79. The Nasdaq Composite Index <.IXIC> gained 37.81 points, or 1.79 percent, to 2,150.25.
Shares of chipmakers rose sharply, with the PHLX semiconductor index <.SOXX> up 3.1 percent, its largest increase in a month.
(Reporting by Rodrigo Campos; Editing by Jan Paschal)
© Copyright Thomson Reuters 2024. All rights reserved.