As earnings drew near and trade concerns subsided, US markets surged. In the midst of robust tech and car gains, global markets rebounded, with South Korea and Japan setting records.
After last week’s volatility, the US market showed indications of stabilization as it began higher on Monday. The tech-heavy Nasdaq Composite increased by 0.8%, the Dow Jones Industrial Average increased by 253 points, and the S&P 500 gained 0.6%.
Concerns over the quality of loans caused regional bank stocks to fall last week, but they have since partially recovered.
After the bell, Zions Bancorporation will publish its Q3 profits. Later this week, Procter & Gamble, Tesla, and Coca-Cola will all reveal their results, which are important markers of consumer demand and margin pressures.
In premarket trade, index futures showed improved investor mood, with S&P 500 futures up 0.4% and Dow and Nasdaq futures up 0.3%.
The market ignored a massive outage at Amazon Web Services that caused numerous significant platforms and apps to stop working. In premarket trading, Amazon shares were mostly flat despite the disruption.
Following President Donald Trump’s easing of his stance on possible tariffs and his confirmation of plans to meet with Chinese President Xi Jinping at an upcoming meeting in South Korea, investor anxiety over US-China trade tensions somewhat subsided.
After First Brands Group filed for Chapter 11 last month, attention is still on the stability of the banking sector. In light of rising interest rates, analysts are keeping an eye on whether recent credit issues are unique or a sign of more widespread stress in commercial lending.
International markets also showed an upward trend. France’s CAC 40 was unchanged, the U.K.’s FTSE 100 increased 0.3%, and Germany’s DAX increased 1.3%. After political events cleared the path for pro-market policies under possible new leadership, Japan’s Nikkei 225 jumped 2.9% to a new record high in Asia.
Despite strong export demand, China’s GDP growth fell to 4.8% year over year, the lowest level in a year. The Shanghai Composite increased by 0.7%, while the Hang Seng Index increased by 2.5%. Strong performance in semiconductor and auto companies helped South Korea’s Kospi rise 1.3%, setting a new high.