S&P 500 Index opens sharply higher near 3,500

• Wall Street’s main indexes started the new week on a strong footing.
• S&P 500 Energy Index gains more than 2.5% to lead the rally.
• Focus shifts to the first US presidential debate.

Major equity indexes in the US opened sharply higher on Monday. As of writing, the S&P 500 was up 1.35% on the day at 3,342, the Dow Jones Industrial Average was gaining 1.4% at 27,548 and the Nasdaq Composite was rising 1.5% at 11,317.

Over the weekend, the data from China showed that industrial profits rose 19.1% on a yearly basis in August and allowed risk flows to take control of financial markets amid renewed hopes of a steady global economic recovery.

Among the 11 major S&P 500 sectors, the Energy Index is up 2.4% as the best-performer on Monday. On the other hand, the defensive Utilities Index is underperforming in the early trade, gaining only 0.35%. 

Meanwhile, investors will be closely watching the first presidential debate on Tuesday. Previewing this event, “the topics will include COVID-19, the economy and the Supreme Court,” TD Securities analysts noted. “Former VP Biden maintains a sizable 7pp lead over President Trump in national polling, although the Electoral College race looks much tighter.”

S&P 500 chart (daily)