Market Up on Early Trading
Stocks were off to a strong start in the first few minutes after the opening bell Monday, as investors looked to recover from last week’s big pullback.
The Dow Jones industrial average, Standard & Poor’s 500 and Nasdaq-100 stocks were all higher.
“It looks like a strong bounce back,” said David Jones, chief market strategist at IG Markets in London, before the start of trading on Wall Street. “This might be a feeling that the sell-off in banks might have gone too far. There may be a feeling that the pessimism may have been overdone on Friday.”
Stocks on Wall Street plunged last week, turning in their worst week in nearly a year, after President Obama proposed new limits on banks. The Dow, which sank 4%, had its worst week since March 6, 2009.
Federal Reserve: U.S. central bankers meet Tuesday and Wednesday and are widely expected to leave interest rates unchanged at near zero.
Many economists doubt the Fed will offer new details about when it plans to start raising rates or withdrawing its stimulus programs, but investors nonetheless will scrutinize its policy statement for any clues.
World markets: Sentiment was downbeat in Asia, where Japan’s Nikkei tumbled 0.7%. Major European indexes were lower at midday.
Cash and bonds: The dollar was mixed against major international currencies, slipping versus the euro and the British pound, but rising against the yen. The price dropped on the 10-year note, driving up the yield to 3.62%.
Oil and gold: The price of oil rose 8 cents to $74.62. The price of gold rose $6.30 to $1,096 per troy ounce.