US equities rebounded on Mon, with the broader S&P 500 closing up 1.86% and steering clear from the bear market territory. Stock market sentiment also received a boost after US President Joe Biden said that he will review some of the tariffs placed on Chinese imports imposed by the prior US administration.
The Dow Jones Industrial Average gained 618.34 pts or 1.98% to close at 31,880.24. The tech-heavy Nasdaq Composite advanced 1.59%. The small-cap Russell 2000 gained 1.10%.
Mega cap tech stocks mostly rose on Mon, except Amazon (AMZN US, -0.03%),vincluding Apple (APPL US, +4.01%), Microsoft (MSFT US, +3.20%), Alphabet (GOOGL US, +2.37%), Nvidia (NVDA US, +1.22%), and Meta Platforms (FB US, +1.39%).
Broadcom (AVGO US, -3.10%) said that an agreement to acquire cloud computing VMWare (WMW US, +24.78%) could be as soon as this week. WSJ reported that Broadcom was offering a cash deal of about $140/share or $60b.
Zoom Video Communications (ZM US, -0.46%) shares surged as much as 17% in after-hours trade on Mon after its 1QFY23 revenue beat expectations.
The yield on the 10-year Treasury note notched up 7.03 basis points (bps) to 2.8514%, while the yield on the 2-year Treasuries rose 3.97bps to 2.6204%.
The iShares iBoxx High Yield Corporate Bond ETF (HYG US) rose 0.39%.
The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 1.04% to 102.076.
The front-month Brent future closed up 87 cents at US$113.42/bbl while the WTI futures closed down at $2.94 at US$110.29/bbl. The most actively traded US gold futures (Jun) contracts settled up $5.70, or 0.31%, at US$1,847.80/oz. July silver, which is the most actively traded silver futures, rose 4.9 cents, or 0.23%, to end at US$21.723/oz.
European equity markets finished higher on Mon. The UK FTSE gained 1.67%, France's CAC 40 rose 1.17%, while the German DAX advanced 1.38%.
ECB President Christine Lagarde said the regulator is likely to start raising interest rates in Jul and exit sub-zero territory by the end of Sep. The prospect of higher rates lifted the euro up 1.2% to $1.0691 on Mon.