The Dow Jones Industrial Average rallied on Monday (September 13) as the index recovered from a five-day losing streak.
Ending Monday’s session, the Dow Jones advanced 261.91 points, or 0.8%, to 34,869.63 points. The S&P 500 index added 0.2% to 4,468.73 points. Both indexes closed in green for the first time in 6 sessions. Meanwhile, the Nasdaq Composite fell 0.1% to 15,105.58 points, down for the fourth consecutive session.
The average number of Covid-19 infections in the seven days through September 10 dropped from 157,000 at the end of August to 136,000, according to the CDC. Sources close to the matter told Reuters that Pfizer’s Covid-19 vaccine could be approved for use in children by the end of next month.
However, Monday’s rally was restrained. The S&P 500 tended to decline for most of the session and failed to return to its session highs, gaining 0.8% shortly after opening.
The rally of Dow Jones was also erased at the end of the session, the index jumped more than 300 points at the beginning of the session and at one point retreated to an increase of 57.78 points.
CNBC’s Jim Cramer warned investors Monday morning that a positive stock market open could turn bleak during the session, especially during a historically difficult month like September.
Eight out of 11 S&P 500 sectors gained on Monday, led by the energy sector. APA Corp, Marathon Oil and Occidental Petroleum were the top three gainers in the S&P 500, with other energy stocks also supporting the index.
Stocks linked to the economic opening also jumped. Delta Air Lines and Carnival Corp shares both rose. Traditional cyclical stocks like GM and Citigroup also rose.
Nike stock fell after BTIG downgraded the stock citing supply chain challenges caused by the pandemic. BTIG says production issues could significantly affect Nike’s holiday sales.
Inflation concerns have contributed to the market’s recent decline. Data released on September 10 showed that the US PPI producer price index rose 0.7 percent in August and jumped 8.3 percent year-on-year, the biggest annual increase since it was first recorded in May. 11/2010.
Despite last week’s decline, the major indexes are still relatively close to their record highs. The Dow Jones, S&P 500, and Nasdaq Composite are all at most 2% below their all-time highs.