by Stephen Culp
NEW YORK, May 23 (Reuters) – The New York Stock Exchange rebounded sharply on Monday with the support of the banking sector, led by JPMorgan, and digital giants, whose recent difficulties have contributed to Wall Street suffering its most long series of consecutive weekly declines since 2001, in full bursting of the “internet bubble”.
The Dow Jones Industrial Average gained 1.98%, or 618.34 points, to 31,880.24 points.
The S&P-500, the broader and main benchmark for investors, gained 72.39 points, or 1.86%, to 3,973.75 points.
The Nasdaq Composite, with a strong technological component, advanced for its part by 180.66 points (1.59%) to 11,535.28 points.
These last two indices have just experienced seven consecutive weeks in the red, an unprecedented succession since 2001. The negative series currently stretches over eight weeks for the Dow, unheard of since 1932 and the Great Depression.
“It looks like a knee-jerk rally,” Chuck Carlson, managing director of Horizon Investment Services, said of Monday’s rise. “Investors are continuing the momentum from Friday’s last hour of upside, taking advantage of the fact that the market appears to be bouncing off what looks like a resistance level.”
But “the bias remains on the downside”, he added, referring to the persistent concerns of recent weeks linked to inflation, the continuation of the Federal Reserve’s rate hike or the consequences of the Russian military offensive in Ukraine.
Apple (+4.0%) and Microsoft (+3.2%), heavyweights of the rating, spearheaded the rebound of the day while JPMorgan gained 6.2% after raising its forecast for net interest income (non-markets) in 2022, which benefited the entire banking sector.
VMWare jumped 24.8% after reports of Broadcom’s (-3.1%) interest in the cloud computing service provider.
(Report Stephen Culp, with Devik Jain and Anisha Sircar in Bangalore, French version Bertrand Boucey)