U.S. stocks rose more than 1 per cent on Monday, with the S&P 500 snapping a six-day losing streak in a rebound from equities’ biggest weekly drop in almost six months, but Facebook slumped in its second session after a disappointing debut.
Tech shares were among the day’s biggest gainers, with an S&P sector index surging 2.8 per cent on the strength of Apple Inc. Shares of Apple climbed 5.8 per cent to $561.28 (U.S.), leading the Nasdaq to its biggest one-day percentage gain since December, 2011.
Facebook Inc., the social networking giant that fell short of lofty expectations last week, fared no better on Monday. Facebook’s stock sank 11 per cent in its second day of trading, dropping to $34.03, well below its $38 issue price.
Investors are watching the 1,300 to 1,290 range on the S&P 500 as a major support level, the lower end of which was tested last week after the benchmark index had fallen 7.8 per cent since the end of April. The bottom of the range coincides with the S&P 500’s 10-month moving average.
Sentiment improved after G8 leaders gave verbal backing for Greece to stay in the euro and stressed over the weekend that their “imperative is to promote growth and jobs.” Greece is expected to hold elections after the country was unable to form a government following its most recent elections.
The Dow Jones industrial average jumped 135.10 points, or 1.09 per cent, to 12,504.48 at the close. The Standard & Poor’s 500 Index climbed 20.77 points, or 1.60 per cent, to 1,315.99. The Nasdaq Composite Index rose 68.42 points, or 2.46 per cent, to close at 2,847.21.
In another factor helping sentiment, China’s Premier called for additional efforts to support growth on Sunday, signalling Beijing’s willingness to take action after a recent series of economic indicators suggested that the world’s second-biggest economy will slow further in the second quarter.
Financial markets in Canada were closed in observance of the Victoria Day public holiday.