U.S. stocks rise, led by gains in financial stocks
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-- Havens like gold, U.S. Treasurys retreat
-- Volatility index pulls back
U.S. stocks jumped Monday, putting the S&P 500 on course for its biggest one-day gain in months.
The moves marked a turnaround from last week, when geopolitical tensions and a string of disappointing corporate reports sent the S&P 500 and Dow Jones Industrial Average to their steepest weekly declines since March.
The swings punctured what had been a streak of largely listless trading for the stock market. Yet solid corporate earnings, stronger-than-expected economic data from Japan, and some easing of fears of conflict between North Korea and the U.S. helped stocks climb again Monday, traders and investors said.
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To some analysts, the day's moves also appeared to reflect the tendency of investors this year to buy stocks following any pullbacks. That has helped limit both the scale and duration of stock selloffs in recent months, keeping major indexes near their all-time highs.
The Dow industrials added 145 points, or 0.7%, to 22003. The S&P 500 climbed 1%, on track for its biggest one-day gain since April, and the Nasdaq Composite rose 1.3%.
Assets that investors consider to be safer stores of value, including gold and the Japanese yen, pulled back.
Government bonds fell, with the yield on the 10-year U.S. Treasury note rising to 2.224%, according to Tradeweb, from 2.191% Friday. Yields rise as bond prices fall.
Financial stocks rose with bond yields. Banks tend to benefit from higher yields since they boost their net-interest margins, a key measure of lending profitability.
Morgan Stanley and Goldman Sachs Group added more than 1% apiece.
Another sign of the relative calm in the markets: A measure of expected stock volatility that had spiked last week retreated Monday. The CBOE Volatility Index, which tracks investors' expectations of swings in the S&P 500 over the next 30 days, slumped 19%.
"There's been a little bit of a sigh of relief that you haven't seen further escalation," said Supriya Menon, senior multiasset strategist at Pictet Asset Management.
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(END) Dow Jones Newswires
August 14, 2017 14:44 ET (18:44 GMT)