Stocks advanced on Monday, recouping some losses from the sell-off last week, as investors tried to look beyond the uncertain timing of a possible interest rate increase by the Federal Reserve.
U.S. stocks rose in the afternoon Monday, recouping some losses from the sell-off last week, as investors tried to look beyond the uncertain timing of a possible interest rate increase by the Federal Reserve. Drugmakers slumped on concern of new regulations for the industry following comments from Democratic presidential front-runner Hillary Rodham Clinton. Chipmaker Atmel jumped after accepting a bid from Britain’s Dialog Semiconductor.
KEEPING SCORE: The Dow Jones industrial average climbed 141 points, or 0.9%, to 16,526 as of 3:15 p.m. Eastern time. The S&P 500 rose 12 points, or 0.6% to 1,970 and the Nasdaq composite gained 12 points, or 0.3%, to 4,839.
THE QUOTE: “Investors who have been buying the dips in recent years have benefited, so perhaps that they’ll use that strategy until it doesn’t work anymore,” said Jack Albin, chief investment officer at BMO Private Bank.
FINANCIAL BOUNCEBACK: Comments from Federal Reserve officials over the weekend suggested some still foresee a rate increase this year, and financial companies rallied. Citigroup rose 27 cents, or 0.5 percent, to $50.56. Stocks of financial companies fell Friday over fears that lenders would have to hold off increasing borrowing rates on their customers since the Fed had decided to hold off on hiking rates itself.