The stock market got off to a good start to the New Year on Monday, rising sharply as investors bet that the U.S. economic recovery will continue despite a surge in Covid cases over the holiday season.
The Dow Jones Industrial Average rose 0.7% to around 250 points, while the S&P 500 rose 0.6% and the Nasdaq Composite rose 1.2%.
Stocks typically rebound in the first week of a new year, with the index rising an average of about 1.6% and rising 11 of the last 13 calendar years, according to a statement from Bank of America.
Tech giant Apple became the first company to reach over $ 3 trillion in market value after the iPhone maker’s shares rose 2.5% on Monday, adding to their nearly 34% surge last year.
Electric automaker Tesla added momentum, rising more than 13% after the company announced it had shipped 308,600 vehicles in the fourth quarter – well above analysts’ expectations.
Old automaker stocks also rose, with Ford and General Motors each gaining over 4%.
Airlines struggling with thousands of flight cancellations over the holidays due to rising coronavirus cases rose Monday as investors shrugged off concerns, with Delta and United both rising over 4%.