US Shares Advance as Technology, Consumer Discretionary Stocks Rebound

US equities advanced after midday on Monday as technology and consumer discretionary sectors, which were among the worst performers last week, rebounded.

The Nasdaq Composite jumped 2.4% to 14,101.01, with the S&P 500 up by 1.2% to 4,485.12. The Dow Jones Industrial Average climbed 0.6% to 34,938.32 after briefly trading in negative territory earlier.

Consumer discretionary jumped 3%, technology climbed 1.5%, and communication services higher by 1.6%. All sectors were in the green territory by Monday afternoon.

L3Harris Technologies (LHX) reported mixed fourth-quarter results as revenue declined mainly due to divesture in the aviation systems segment and supply chain constraints. The full-year guidance of the defense contractor was below consensus. Shares dropped 3.9% intraday, the worst performer on the S&P 500.

Shares of Netflix (NFLX) were up 10%, among the top gainers on the S&P 500 and Nasdaq, following upgrades at Citigroup and Edward Jones.

The Federal Reserve was probably the main initiator of the market turmoil last week, and traders and investors will remain hypersensitive to any further developments in monetary policy over the short run.