- Major equity indexes in the US are posting strong gains on Monday.
- Risk-on flows dominate markets at the start of the week.
- Energy shares rise sharply on surging crude oil prices.
Wall Street’s main indexes started the new week n a strong footing with the upbeat market mood boosting the demand for risk-sensitive stocks. The CBOE Volatility Index is down nearly 10% on Monday to confirm the risk-on environment.
As of writing, the Dow Jones Industrial Average was up 2.9% on the day while the S&P 500 and the Nasdaq Composite were gaining 2.45% and 1.22%, respectively.
Energy shares surge higher
Earlier in the day, Moderna, one of the leading biotech companies in the race for developing a coronavirus vaccine, announced initial results from first human tests were possible. Moreover, reports suggesting that China’s oil consumption has already recovered to pre-virus levels further helped market sentiment improve.
Among the 11 major S&P 500 sectors, the Energy Index is leading the rally with a gain of more than 6% on the back of surging crude oil prices. The Industrials Index, the Materials Index and the Financials Index are all up more than 4% in the early trade as other strong performers.
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