Wall Street powers up Monday, Dow Jones surges 377 points

NEW YORK, New York — U.S. stocks shot higher Monday despite a CPI report due out Tuesday which analysts expect could sour sentiment.

"Today is just a natural reaction in the opposite direction after we’ve seen very heavy selling pressure," Keith Buchanan, portfolio manager at GLOBALT Investments in Atlanta, Georgia, told Reuters news agency Monday.

"The Goldilocks-like mix of industrial production recovery and falling inflation we expect this quarter has helped boost risk appetite and equities," Ray Farris of Credit Suisse said in a note distributed to clients on Monday.

The major U.S. stock market indices finished considerably higher, with the Standard and Poor’s 500 index closing at 4,137.29, for an increase of 1.14 percent or 46.83 points.

The Dow Jones Industrial Average finished at 34,245.93, with an increase of 1.11 percent or 376.66 points.

The Nasdaq Composite closed at 11,891.79, with an increase of 1.48 percent or 173.67 points.

The volume of shares traded for the S&P 500 was 2.097 billion; for the Dow Jones it was 300.588 million; and for the Nasdaq Composite it was 4.12 billion.

On foreign exchange markets, the U.S. dollar was relatively stable. The euro approached the U.S. close Monday at 1.0721, with an increase of 0.42 percent on the day. The Japanese yen eased to 132.345, a loss of 0.71 percent.

The U.S. dollar saw a decrease in value relative to the Canadian dollar, closing at 1.3340. The British pound advanced 0.73 percent to 1.21351. The Swiss franc firmed to 0.91974, a gain of 0.39 percent.

The Australian dollar jumped 0.73 percent to 0.69654, while the New Zealand dollar did better, rising 0.82 percent to 0.6358.

On international stock markets, the ESTX 50 PR.EUR in Europe closed at 4,241.36, up 43.42 points, or 1.03 percent, while the Euronext 100 Index closed at 1,354.91, up 14.52 points, or 1.08 percent.

In Belgium, the BEL 20 closed at 3,896.88, up 9.39 points, or 0.24 percent. In Germany, the Dax closed at 15,397.34, up 89.36 points, or 0.58 percent. Meanwhile, the CAC 40 in France closed at 7,208.59, up 78.86 points, or 1.11 percent. The MOEX Russia Index in Russia closed at 2,222.51 with a decline of 4.14 points, or 0.19 percent.

In London, the FTSE 100 closed Monday at 7,947.60, with a rise of 65.15 points, or 0.83 percent.

In Japan, the Nikkei 225 recorded a decline, closing at 27,427.32, a loss of 243.66 points, or 0.88 percent. The Hang Seng Index in Hong Kong also reported a loss, closing at 21,164.42 with a decline of 26.00 points, or 0.12 percent.

In mainland China, the SSE Composite Index in Shanghai rose 23.49 points or 0.72 percent to 3,284.16. The Shenzhen Index gained 136.75 points or 1.14 percent to close Monday at 12,113.61.

The Singapore Straits Times Index retreated 35.99 points or 1.07 percent to 3,324.70.

In South Korea, the Kospi Composite declined 17.03 points or 0.69 percent to 2,452.70.

In Australia, the S&P/ASX 200 reported a loss, closing at 7,417.80 with a decline of 15.90 points, or 0.21 percent, while the All Ordinaries edged down 16.60 points, or 0.22 percent, to 7,614.50. Across the Tasman, New Zealand’s S&P/NZX 50 shed 103.58 points or 0.85 percent to 12,075.18.

Elsewhere, in South Africa, the Top 40 USD Net TRI Index closed at 4,442.46, up 65.72 points, or 1.50 percent.