All the S&P 500's primary sectors are higher, but tech and financials are leading the advance
U.S. stock gauges rose on Monday, with technology and financial shares leading the way as major benchmarks rebounded from their biggest weekly drop in more than a month.
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The Dow Jones Industrial Average rose 129 points, or 0.6%, to 21,990, powered in part by 2% climb in shares of Goldman Sachs Group Inc.(GS).
The S&P 500 added 19 points, or 0.8%, to 2,460. The Nasdaq Composite Index added 59 points to 6,316, a rise of 1%.
The day's rally was widespread, with all of the S&P 500's primary sectors gaining on the day. The biggest advancers were technology shares (XLK), up 1.1%, and financials (XLF), up 1.2%.
Last week's decline was driven in large part by fears over North Korea, where tensions with the U.S. have been escalating. That issue overshadowed the state of the equity market, where earnings have been viewed as strong at a time of high employment and low inflation, as well as valuations that appear elevated by many metrics. The S&P 500 lost 1.4% for the week, while the Nasdaq Composite Index gave up 1.5%. The week marked the biggest one-week percentage drop for both the Dow and the S&P since March, as well as the biggest for the Nasdaq since June, although it was also the Nasdaq's third straight weekly loss.
"It's impossible to know if last week's move was overdone. Valuations are reasonable, given the inflationary environment, and we've seen some good data, but we haven't had a correction in 17 months, so it's about time," said Charlie Smith, chief investment officer at Fort Pitt Capital Group.
Read more:Bruising stock-market selloff may have cracked the rally's foundation (http://www.marketwatch.com/story/bruising-stock-market-selloff-may-have-cracked-the-rallys-foundations-2017-08-11)
The selloff took the S&P and Nasdaq below their 50-day moving averages, seen as a bearish sign for near-term momentum if they continue to trade under that level. If they recover above it, however, that would be the latest example of investors using any decline as an opportunity to buy on the dip (http://www.marketwatch.com/story/a-problem-for-buy-the-dip-investors-no-dips-to-buy-2017-08-08).
Monday's advance represented the biggest one-day percentage rise for the S&P since June 28, the biggest for the Dow since July 3, and the biggest for the Nasdaq since July 12.
White House officials over the weekend found themselves working to clarify President Donald Trump's comments (http://www.marketwatch.com/story/a-day-later-white-house-says-trump-meant-to-condemn-white-supremacists-2017-08-13) on deadly violence at a white supremacist rally in Charlottesville, Va., after his initial remarks on the matter (http://www.marketwatch.com/story/watch-live-trump-comments-on-charlottesville-va-display-of-hatred-bigotry-and-violence-on-many-sides-2017-08-12) drew flak from Democrats and Republicans. Smith said that while market participants were likely following the events, they would have little direct impact on equities.
Also over the weekend, Secretary of Defense James Mattis and Secretary of State Rex Tillerson sought to play down the risk of a conflict, writing in The Wall Street Journal that the Trump administration is seeking diplomatic solutions (http://nation.foxnews.com/2017/08/13/mattis-and-tillerson-were-holding-pyongyang-account) to achieve the "irreversible denuclearization" of North Korea.
See also:This 'warning siren is blaring,' but that's not stopping the Wall Street hype machine (http://www.marketwatch.com/story/this-warning-siren-is-blaring-but-thats-not-stopping-the-wall-street-hype-machine-2017-08-14)
Other markets: European equities stepped higher, and Asian markets mostly closed with gains (http://www.marketwatch.com/story/asian-markets-mostly-higher-as-north-korea-rhetoric-settles-down-2017-08-13). Oil futures traded lower, as a key dollar index advanced modestly.
Individual movers: Chipmakers were among the biggest gainers of the day, leading the overall technology sector higher. Micron Technology (MU) added 4.3% while Advanced Micro Devices Inc. (AMD) was up 3.9%. The PHLX Semiconductor Index gained 1.7%.
Shares in Tesla Inc.(TSLA) rose 2.3% after Baird analyst Ben Kallo--a longtime Tesla bull (http://www.marketwatch.com/story/heres-why-tesla-is-bairds-top-stock-market-pick-for-2017-2016-12-30)--hiked his price target for the electric-car maker's stock to $411 (http://www.marketwatch.com/story/tesla-price-target-lifted-to-411-at-baird-who-says-dont-short-ahead-of-model-3-2017-08-14) from $368.
Netflix Inc.'s stock (NFLX) traded 0.8% lower after a Barron's cover story over the weekend warned the stock could drop more than 50% as "Disney goes its own way and Amazon looms (http://www.barrons.com/articles/the-trouble-with-netflix-1502510711?mod=mktw)," referring to a Netflix-Disney distribution deal that's ending and the threat from Amazon.com Inc.'s (AMZN) streaming business.
Don't miss:Netflix will survive the Disney cord-cut, and here's the proof: Piper Jaffray (Netflix will survive the Disney cord-cut, and here's the proof:Piper%20Jaffray)
And in other Netflix news, the streaming giant has recruited prolific TV producer Shonda Rhimes (http://www.marketwatch.com/story/netfix-poaches-producer-shonda-rhimes-from-abc-in-a-volley-lobbed-at-hollywood-2017-08-14), the creator of hits such as "Grey's Anatomy" for Walt Disney Co.'s (DIS) ABC, in a sign of an arms race for talent.
Merck & Co. (MRK) rose 0.7%. Kenneth Frazier, the company's chief executive, said he was resigning from the President's American Manufacturing Council (http://www.marketwatch.com/story/merck-ceo-to-resign-from-presidents-american-manufacturing-council-two-days-after-charlottesville-violence-2017-08-14) following Saturday's deadly violence at a white supremacist rally in Charlottesville, Va.
Economic news: There are no top-tier U.S. economic reports expected Monday, and no Federal Reserve officials are due to speak.
Tuesday should bring U.S. retail sales data for July, and minutes from the Fed's last policy meeting are on tap for Wednesday.
And read:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
(END) Dow Jones Newswires
August 14, 2017 10:02 ET (14:02 GMT)