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Dow soars 586 points in best day since March as the reopening trade recovers


US stocks surged on Monday, with the Dow Jones having its best day since March and jumping nearly 600 points.

The rally was driven by the reopening trade, which had mostly stumbled in June as large-cap technology stocks began to outperform. The best-performing sector on Monday included energy, basic materials, and financials.

Investors’ fears over the Federal Reserve’s surprise hawkishness last week subsided in Monday’s trading session. The Fed’s interest-rate dot plot and comments about rising inflation helped spur a three-day sell-off last week, with the reflation trade quickly unraveling as stocks in the energy, financials, and industrial sectors sold off sharply.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

While stocks moved higher on Monday, cryptocurrencies experienced a sharp decline. Bitcoin fell more than 14% over the weekend as China continued to crack down on mining operations in the country.

But the decline in bitcoin didn’t stop MicroStrategy from buying more of the cryptocurrency. The company announced it purchased an additional $489 million worth of bitcoins, which brought its total holdings to more than 105,000 bitcoins.

Bitcoin’s price weakness sparked a bearish technical signal over the weekend, known by many as a “death cross,” as the 50-day moving average has crossed below its longer-term 200-day moving average. The death cross signals that there could be more downside ahead for bitcoin.

The hedge-fund manager Bill Ackman’s $4 billion mega-SPAC deal to buy 10% of Universal Music was accepted over the weekend, and Ackman indicated that he was on the hunt for two more multibillion-dollar deals.

Shares of ContextLogic jumped as much as 22% on Monday as Redditors highlighted it as a meme-stock play for the week.

Dogecoin has fallen by more than 70% from its peak in May, and the holdings value of the mysterious dogecoin whale that owns 28% of the cryptocurrency dropped to $8 billion from a peak of $24 billion in May.

Oil prices were broadly higher. West Texas Intermediate crude was up 2.7% to $73.56 a barrel. Brent crude, oil’s international benchmark, jumped 2% to $74.93 a barrel.

Gold rose 0.8% to $1,783.20 an ounce.

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