Wall Street bounced back on Monday as bargain hunters returned in force after last week’s sell-off and expectations of a flurry of holiday cyber-spending drove up shares of retailers.
The S&P 500 and the Dow Jones Industrial Average rose about 1.5 percent, while the Nasdaq advanced more than 2 percent. All three indexes posted their largest percentage gains in nearly three weeks. On Friday the S&P 500 closed 10.2 percent below its record high, confirming a correction for the second time this year.
An online spending frenzy was expected as retailers tempted customers with a blizzard of discounts and free shipping. Cyber Monday spending is seen reaching an all-time high of $7.8 billion in the United States, according to Adobe analytics.
Amazon rose 5.3 percent, providing the greatest boost to both the Nasdaq and the S&P Retail index, which was up 3.1 percent.
Crude oil prices posted their largest percentage increase in five months, driven higher by falling domestic inventory and increasing supply worries. That pushed energy shares up 1.7 percent. Brent crude prices have fallen nearly 30 percent since early October.
General Motors announced it would cut production, ax low-selling models and reduce its North American headcount in the automaker’s largest restructuring since emerging from bankruptcy a decade ago. The stock ended the session up 4.8 percent.
All 11 major sectors of the S&P 500 index rose, with the consumer discretionary index and the tech index seeing the largest percentage gains.
The technology sector rose 2.3 percent and provided the greatest enhancement to the S&P 500, following a slide of more than 6 percent last week, its worst decline in eight months.
Nvidia gained 5.6 percent after Credit Suisse initiated coverage of the chipmaker with a bullish outlook.
Zafgen fell 40.5 percent after the FDA put a hold on trials of the company’s experimental diabetes drug, citing safety concerns.
The third-quarter reporting season is largely over, with nearly 97 percent of companies in the S&P 500 having reported, 78 percent of which beat analyst expectations, according to Refinitiv data.
Wall Street is looking carefully at the upcoming G20 Summit convening in Buenos Aires on Friday and Saturday, with Trump and China’s Xi Jinping expected to meet regarding their two countries’ escalating tariff dispute.
Approximately 6.68 billion shares changed hands on the major domestic equity exchanges, as compared to the 8.02 billion share average over the past 20 trading days.