While the S&P 500 is up more than 17 per cent for the quarter, the index is down slightly for the month, as stocks have been buffeted by signs of progress in battling the coronavirus and a recent resurgence in cases.
The Dow Jones Industrial Average rose 580.25 points, or 2.32 per cent, to 25,595.8, the S&P 500 gained 44.19 points, or 1.47 per cent, to 3,053.24 and the Nasdaq Composite added 116.93 points, or 1.2 per cent, to 9,874.15.
Each of the 11 major S&P sectors was in positive territory, led by industrial stocks.
It sets up the Australian sharemarket for gains, with futures at 6.10am AEST pointing to a jump of 72 points, or 1.2 per cent, at the open. On Monday, the ASX fell by 1.5 per cent.
“For all the up, for all the down, volatility isn’t going anywhere,” said Willie Delwiche, investment strategist at Baird “Maybe that is the lesson of June, these one-day moves seem impressive but you string 20 of them together and you’ve got nothing.”
The benchmark S&P 500 has rebounded about 36 per cent from its March 23 closing low. Monday’s gains pushed the index above its 200-day moving average, a technical support level it had fallen through with last week’s decline.
Data on Monday showed contracts to buy previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around. Later this week, investors will focus on employment and consumer confidence data.
Still, Wall Street was looking for more stimulus measures to buttress the economy. Analysts at Morgan Stanley said a further injection of cash was critical to the bank’s thesis for a “V”-shaped US economic recovery.
The BlackRock Investment Institute downgraded US equities to “neutral,” citing risks of