U.S. Stocks Recover After Weak Start, Close On Firm Note

(RTTNews) - After staying weak till about an hour past noon, U.S. stocks recovered and climbed higher on Monday and eventually ended the day's session on a fairly firm note.

Rising geopolitical crisis in the Middle East hurt sentiment and set up a weak start for the market, and stocks mostly struggled till noon. However, the mood turned a bit positive thereafter as worries about interest rates eased after Federal Reserve Vice Chair Philip Jefferson said the central bank needs to "proceed carefully to balance the risk of tightening too much.

Energy stocks gained as oil prices surged amid concerns about potential disruptions in supply due to the conflict in the Middle East.

The major averages all ended higher. The Dow settled with a gain of 197.07 points or 0.59 percent at 33,604.65.

The S&P 500 ended higher by 27.16 points or 0.63 percent at 4,335.66, while the Nasdaq ended with a gain of 52.90 points or 0.39 percent at 13,484.24.

The mood was cautious with investors awaiting the inflation data, due later in the week.

The inflation data could have a significant impact on the outlook for interest rates amid recent concerns the Federal Reserve will keep rates at an elevated level longer than previously anticipated.

Airline stocks ended sharply lower, weighed down by the conflict in the Middle East, and higher oil prices. Energy stocks gained, while biotechnology stocks drifted lower.

Northrop Grumman soared 11 percent. Marathon Oil, CF Industries, Conoco Philips, Axon Enterprise, Exxon Mobil, Baker Hughes, Universal Health Services, Textron and Chevron gained 2.7 to 6.5 percent.

United Airlines Holdings, Delta Airlines, Carnival, Solaredge Technologies and American Airlines ended lower by 4 to 5 percent.

Southwest Airlines, Moderna, Alaska Air, Nvidia, General Electric and Tesla were among the other losers in the session.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with markets in Japan and South Korea closed for holidays. China's Shanghai Composite Index edged up by 0.2 percent, while Hong Kong's Hang Seng Index slid by 0.4 percent.

The major European markets closed weak. While the U.K.'s FTSE 100 Index edged down 0.03%, Germany's DAX dropped 0.67 percent, and France's CAC 40 declined 0.55 percent, while the pan European Stoxx 600 ended down 0.26 percent.

The bond markets were closed today due to the Columbus Day/Indigenous Peoples' Day holiday.