Markets moved higher on Monday as stocks tried to rebound from a losing week; investor sentiment rose thanks to positive news out of China, which looks to be easing coronavirus lockdown restrictions and regulatory crackdowns on its tech sector.
Stocks attempted to rebound from last week’s losses: The Dow Jones Industrial Average rose 1%, over 300 points, while the S&P 500 gained 1.3% and the tech-heavy Nasdaq Composite 1.6%.
Investor sentiment was up early on Monday after news that China would be rolling back more of its Covid-19 restrictions, with the reopening news providing a boost to global markets.
What’s more, the Wall Street Journal reported that Chinese regulators will conclude a years-long probe into ride-sharing giant Didi and lift a ban on new users, pushing stocks higher on hopes that China’s regulatory crackdown on its tech sector could be nearing its end stages.
US tech stocks largely moved higher and led the market gains on Monday: Shares of Apple rose over 1% and Google parent Alphabet over 3%, while e-commerce giant Amazon saw its stock jump 2% on the first day of trading after a 20th :1 stock split took effect.
Shares of electric vehicle maker Tesla, meanwhile, rose around 2% and rebounded slightly from steep losses last Friday when shares fell 9% after CEO Elon Musk warned of layoffs and said that he had a “super bad feeling” about the economy.
Despite markets kicking off the week on a positive note, all of the major averages are still trading below their 50- and 200-day moving averages and “remain mired in pretty well-defined downtrends with a series of lower highs and lows,” notes Bespoke Investment Group.