The Dow and S&P 500 turned higher late in Monday’s trading session, while oil tumbled.
The rally came even as the Biden administration proposed slowing stock repurchases by limiting when executives can sell shares.
JPMorgan’s quant guru said investors should remain cautious, but he doesn’t expect a recession to happen.
US stocks closed higher Monday after the Dow Jones Industrial Average and the S&P 500 reversed losses late in the trading session.
The Nasdaq in particular made a strong gain, as Tesla jumped 8% on news of a coming stock-split. The rally came even as the Biden administration is seeking to slow stock repurchases by limiting when executives can sell shares. The proposal is part of a 2023 budget that would also hike taxes on the ultra-rich and add more defense spending.
Meanwhile, bond yields ticked lower, but still remaining near their highest levels in three years, and oil prices dove sharply on new coronavirus-related lockdowns in China.
Here’s where US indexes stood as the market closed at 4:00 p.m. on Monday:
JPMorgan’s quant guru, Marko Kolanovic, said an inverted yield curve and a hawkish Fed warrant caution from investors, though a recession is still unlikely.
AMC Entertainment surged today after its CEO mapped out more strategic deals to capitalize on interest from retail investors. «Our shareholder base has given us capital to deploy with the clear expectation that we are … going to do exciting things with the money they entrusted to us,» said Adam Aron.
Overseas, Russia is preparing to make payments on a $2 billion dollar-denominated bond due next week, after it narrowly avoided a default earlier this month. As the Russian central bank makes a flurry of moves to navigate sanctions, UBS said it’s unclear whether it’s using gold.
Bitcoin rose 7.03% to $48,021.69.
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