- Higher risk appetite boosts stocks on Monday.
- CBOE Volatility Index drops nearly 5% in the first hour.
- All 11 major sectors start the day in the positive territory.
The strong rebound witnessed in the European stocks on Monday helped Wall Street start the week on a positive note. The CBOE Volatility Index, Wall Street’s fear gauge, fell nearly 5% to reveal a higher risk appetite. As of writing, the Dow Jones Industrial Average was up 1.3% on the day at 24,600.80 while the S&P 500 was adding 1.2% to 2,663.77 and the Nasdaq Composite was gaining 1.45% to 6,621.92.
Reports of Italy being open to cut the deficit target to appease the EU caused the country’s 10-year bond yield to drop more than 4% today and allowed the shares of financial firms find demand. At the moment, the S&P 500 Financials Index was up 1.76% on the day. Additionally, a more-than-3% recovery seen in crude oil prices on Monday lifted the S&P 500 Energy Index, which was rising 1.78% at the time of press.
Meanwhile, the so-called defensive sectors are underperforming in early trade with the S&P 500 Real Estate and Utilities indexes adding only 0.27% and 0.42%, respectively.
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