Wall Street stocks reverse worst Friday downtrend

Wall Street stocks rallied and stayed strong throughout the US trading session. UK political developments in addition to Monday’s softer US dollar and global yields helped to boost risk appetite amid strong corporate earnings.

The US dollar slid into support on the daily chart, as illustrated below, while the 10-year yield fell below 4% and tapped into its daily support structure too.

It has been a better day for Wall Street on Monday. By midday, the Dow Jones Industrial Average advanced 1.8% to 30,311.95 from 29,997.62 ad up over 2%. The S&P 500 was up 2.77% to 3,681 and the Nasdaq Composite was 3.58% higher at 11,073.19.

Real estate stocks led the gaining stocks, with all sectors in the green territory. Risk currencies, such as the NZD, were firmer ahead of the Reserve Bank of New Zealand’s meeting later on Tuesday.

Bank of America and Bank of New York Mellon are both up strongly in the premarket. On Monday, both reported better-than-expected results, sending the stock up 6%. Bank of New York Mellon also posted results that beat analysts’ expectations and its shares jumped 5%.

Eyes will be focused on Netflix, Tesla and IBM later this week. Monday’s overall performance was successful at easing some of investors’ fears.

Tech shares enjoyed a rebound rally. Q3 earnings season is unfolding. Investors are monitoring if corporates will have any significant downward revisions to their estimates in the face of high inflation and the economic slowdown.


Another factor in Monday’s moves were political developments in Europe, where new UK finance minister Jeremy Hunt announced that almost all planned tax cuts would be scrapped. The pound traded more than 1% higher at almost $1.135 per U.S. dollar, and U.K. government debt rallied sharply.
Stocks finished the day up solidly higher, with the Nasdaq Composite leading the way with a gain of more than 3%. The Dow added more than 500 points to close back above the 30,000 level.