Stocks are climbing on Wall Street Monday and pulling near their records following last week’s roller-coaster ride.
The S&P 500 rose 1% and got back within 0.4% of its all-time high set earlier this month. The Dow Jones Industrial Average was up 358 points, or 0.8%, and the Nasdaq composite was 1.4% higher just before noon Eastern time.
Cleveland-Cliffs helped lead the way with a jump of 24% after the steel company’s CEO, Lourenco Goncalves, said it would provide details soon about a potential deal with a major global steel producer that could mean bigger profits. He also said Cleveland-Cliffs has potentially found rare earths at sites in Michigan and Minnesota.
Such materials have thrust into the global spotlight after China put curbs on the export of its own rare earths, a move that President Donald Trump earlier this month characterized as hostile. Trump’s ensuing threat of higher tariffs on China triggered big swings for Wall Street, but the concerns eased a bit after Trump said such high tax rates are unsustainable.
Another source of worry for Wall Street, from the banking industry, also appears to be easing. Stocks of smaller and midsized banks climbed Monday, recovering some of their losses after a couple raised alarm bells last week by warning about potentially bad loans they’ve made.
The disclosures had raised questions about whether the growing list of problems is just a collection of one-offs or a signal of something larger threatening the entire industry.
Zions Bancorp. rose 2.5% following its 5.1% drop last week. It will report its latest quarterly earnings after trading ends for the day, and scrutiny will be high after it said it’s charging off $50 million of loans where it found “apparent misrepresentations and contractual defaults” by the borrowers.
This will be a heavier week for corporate earnings reports generally. Big names delivering their latest results will include Coca-Cola on Tuesday, Tesla on Wednesday and Procter & Gamble on Friday.
The pressure is on companies to show that their profits are growing because they need to justify the big gains their stock prices have made. The S&P 500 is still near its all-time high, which was set earlier this month following a torrid 35% run from a low in April.
Delivering bigger profits is one of the easiest ways for companies to quiet criticism that stock prices have gone too high. The other is for stock prices to fall.
Corporate profit reports have also taken on more importance because they’re offering windows into the strength of the U.S. economy when the U.S. government’s shutdown has delayed many important economic updates.
That’s making the job of the Federal Reserve more difficult, as it tries to decide whether high inflation or the slowing job market is the bigger problem for the economy. Fed officials have indicated they’re likely to cut interest rates a few more times through next year in order to give the economy a boost. But that could be a mistake if inflation worsens because low interest rates can push prices even higher.
On Friday, the U.S. government will issue an update for inflation during September. The report was supposed to arrive earlier in month, and the Social Security Administration needs the numbers to calculate cost-of-living adjustments for beneficiaries.
But the government said, “No other releases will be rescheduled or produced until the resumption of regular government services.”
In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury eased to 3.99% from 4.02% late Friday.
Treasury yields have been falling recently, and lower yields help make stock prices look less expensive by encouraging some investors to buy stocks when they otherwise would have bought bonds.
On Wall Street, Amazon’s stock held up despite a widespread outage for its cloud computing service that caused disruption for internet users around the world early Monday. Amazon’s stock rose 0.8%.
In stock markets abroad, indexes rose across much of Europe and Asia.
Japan’s Nikkei 225 jumped 3.4%, after its governing Liberal Democrats found a new coalition partner, securing support for its leader Sanae Takaichi to become the country’s first female prime minister. Investors expect Takaichi to push for low interest rates, higher government spending and other policies that could help the market.
Indexes rose 2.4% in Hong Kong and 0.6% in Shanghai after China reported its economy grew at a 4.8% annual pace in the last quarter, supported by relatively strong exports as companies increased shipments markets other than the U.S.
Still, it was the slowest pace in a year. The world’s second-largest economy is still struggling to emerge from a prolonged downturn in its property market and to encourage consumers and businesses to spend more.
—Stan Choe, AP business writer
AP Business Writers David McHugh and Elaine Kurtenbach contributed.