The value or reflation trade continued at full steam overnight, with the Dow Jones jumping 1.8% on little news outside of another member of the Federal Reserve noting that the economic recovery is likely to be varied and uneven.
The S&P 500 also added 1.4% with the Nasdaq underperforming, jumping 0.8% as investors flocked back to the financials and energy sectors.
The oil price rallied once again sending energy stocks higher, however, it was the banks that drove the market, with the sector having a strong session as a combination of lower short-term bond yields and higher longer-term yields is expected to boost profitability.
Billionaire Ray Dalio of Bridgewater was the latest to throw their hat in the ring suggesting the Fed will find it difficult to increase rates without creating significant volatility in markets.
Netflix signs massive deal
Turning to company-specific news, Netflix (NASDAQ: NFLX) was lower despite announcing a high-profile deal with Steven Spielberg to produce a number of movies each year.
Featured video: Buying into innovation with Simon Erickson, 7Investing
US stock market movers
Here’s how other popular US stocks started the week on Monday.
- Moderna (NASDAQ: MRNA) up 4.5%
- American Express (NYSE: AXP) up 4.3%
- 3M (NYSE: MMM) up 1.9%
- Apple (NASDAQ: AAPL) up 1.4%
- CrowdStrike (NASDAQ: CRWD) down 3.0%
- Uber (NSYE: UBER) down 3.2%
- Pinterest (NYSE: PINS) down 4.1%
- Wix (NASDAQ: WIX) down 4.6%
ASX 200 today
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow US markets higher at the open this morning. For all the latest, check out Rask Media’s ASX 200 morning report.