Wall Street’s main indexes have risen one per cent following their worst week in at least four months as Amazon and Nike gained and US factory activity showed a surprise rebound.
ISM data showed the manufacturing sector expanded in January after five straight months of contraction, offering hope that a prolonged slump in business investment has probably bottomed out.
Alphabet gained 2.6 per cent ahead of its quarterly results, which will wrap up earnings for the so-called FAANG group of stocks.
A 4.1 per cent rise in Nike’s shares after JP Morgan added the footwear maker to their focus list provided the biggest boost to the Dow Industrials.
The consumer discretionary index gained 1.6 per cent on Monday, the most among the 11 major S&P indexes.
Also helping the mood were steps by China’s central bank to improve liquidity and relieve pressure on its economy from the impact of the coronavirus epidemic.
Fears surrounding the economic impact of the outbreak, which has been declared as a global emergency, had shaved off more than 600 points from the Dow Jones Industrials and pushed the benchmark S&P 500 into the red for the year on Friday.
Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York, said some had sensed an opportunity.
“People are just looking at this as an opportunity to step in and do a little bit of buying,” he said.
“The coronavirus concerns are still at the forefront of investors’ minds.”
At 10.16am local time, the Dow Jones Industrial Average was up 319.06 points, or 1.13 per cent, at 28,575.09, the S&P 500 was up 35.54 points, or 1.10 per cent, at 3261.06. The Nasdaq Composite was up 131.46 points, or 1.44 per cent, at 9282.40.
Gilead Sciences’ shares jumped 4.5 per cent after the drugmaker said it has provided its experimental Ebola therapy for use in a small number of patients affected by the coronavirus in China.
Advancing issues outnumbered decliners by a 3.20-to-1 ratio on the NYSE and a 2.66-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and five new lows, while the Nasdaq recorded 37 new highs and 36 new lows.