Pointers from the financial market’s performance in 2017 for the upcoming year. Lucas Jackson/Reuters
NEW YORK (Reuters) – Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while U.S. debt yields rose on improved risk appetite.
China’s main bourses clawed back almost half the 4 percent they lost on Friday as the country’s central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost 30 years.
U.S. stocks followed strong gains in Europe with the benchmark S&P 500 and tech-heavy Nasdaq rising more than 1 percent after Wall Street posted losses every day last week.
“This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip,” said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas.
“It’s buy the dip, it’s back,” Dick said.
The Dow rebounded after Boeing Co, the index’s best performing component this year by far, pared steep losses after some airlines grounded the company’s new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.
Boeing shares dropped 5.5 percent, paring losses of about 13.5 percent shortly after the open.
The Dow Jones Industrial Average rose 161.81 points, or 0.64 percent, to 25,612.05. The S&P 500 gained 35.48 points, or 1.29 percent, to 2,778.55 and the Nasdaq Composite added 136.71 points, or 1.85 percent, to 7,544.85.
The FTSEurofirst 300 index of leading regional shares closed up 0.76 percent, while MSCI’s gauge of stocks across the globe