Wall Street has positive start to week, Dow Jones and Nasdaq each jump 72 points




NEW YORK, New York — Stocks in the United States, Europe and the UK began the week on a positive note Monday with rises across the board.

"Because of the renewed focus on hotter inflation and the implications for the Fed, rates are once again driving equities," Ross Mayfield, investment strategy analyst at Baird told CNBC Monday. "The rapid shift in Fed funds expectations and the spike in short-term yields has been risk-off in the stock market, so some reprieve on rates today will likely boost equities."

"A holiday-shortened week was more than enough time for bears to remind everyone that January’s rally didn’t mean stock-market volatility had been permanently exiled," Chris Larkin, head of trading and investing at E-Trade told CNBC. "Investors are coming to grips with rates being higher for longer and Friday’s hotter-than-anticipated inflation data effectively confirmed just that."

U.S. stocks rallied hard earlier but trimmed gains before the close.

The Nasdaq Composite increased 72.04 points or 0.63 percent to close Monday at 11,466.98.

The Standard and Poor’s 500 advanced 12.20 points or 0.31 percent to 3,982.24.

The Dow Jones industrials gained 72.17 points or 0.22 percent to 32,889.09.

On Monday’s foreign exchange markets, the Euro saw a modest increase against the U.S. dollar. The EURUSD pair closed at 1.0608, up by 0.60 percent or 0.0063.

Meanwhile, the Japanese yen weakened to 136.237, down by 0.17 percent or 0.23.

The Canadian dollar fell to 1.35753, down by 0.23 percent or 0.0030.

On the other hand, the British pound saw a strong surge against the U.S. dollar. The GBPUSD pair closed at 1.2057, a gain of 1.00 percent or 0.01190.

The Swiss franc eased to 0.93591, a dip of 0.52 percent or 0.0048.

The Australian dollar saw a slight increase against the U.S. dollar. The AUDUSD pair closed at 0.6739, up by 0.23 percent or 0.0015. The New Zealand dollar also edged higher. The NZDUSD pair closed at 0.6167, up by 0.10 percent or 0.00059.

Sharp gains in Europe boosted global stock markets on Monday. Overall, the Euronext 100 Index closed up by 1.41 percent or 18.83 points at 1,355.47, while the BEL 20 Index rose by 1.27 percent or 48.95 points to close at 3,908.45.

The FTSE 100 index in London rose by 0.72 percent, gaining 56.45 points to finish at 7,935.11.

The German Dax rose by 1.13 percent or 171.69 points to close Monday at 15,381.43.

The CAC 40 index ended the day up by 1.51 percent, adding 108.28 points to finish at 7,295.55, while the ESTX 50 PR.EUR also saw a positive day, gaining 1.66 percent or 69.19 points to finish at 4,248.01.

The MOEX Russia Index, going against the trend, edged down 0.19 percent or 4.14 points to close at 2,222.51.

Meanwhile, the Nikkei 225 index fell by 0.11 percent, dropping 29.52 points to close at 27,423.96. The Hang Seng Index and Shanghai Composite Index also saw losses, dropping by 0.33 percent or 66.53 points to close at 19,943.51 and 0.28 percent or 9.13 points to close at 3,258.03, respectively.

Other indices that finished in the red include the Shenzhen Index, which dropped by 0.73 percent or 85.51 points to finish at 11,701.95; the S&P/ASX 200 index, which fell by 1.12 percent or 82.20 points to close at 7,224.80; the Australian All Ordinaries index, which lost 1.24 percent or 93.10 points to close at 7,419.60; and in Seoul, South Korea, the KOSPI Composite Index, which fell by 0.87 percent or 20.97 points to close Monday at 2,402.64.

Investors remain cautious as the markets continue to fluctuate amid concerns over rising inflation and its impact on the global economy.

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