US Stocks rebound on bargain hunting

The US stocks advanced on Monday, 01 February 2021, with the major averages all climbed firmly into positive territory, with the tech-heavy Nasdaq showing a particularly strong advance, as investors chased for bargain hunting after some of the recent losses that turned the last week as well as the last month into the worst since October.

At the close of trade, the Dow Jones Industrial Average index advanced 229.29 points, or 0.76%, to 30,211.91. The S&P 500 index increased 59.62 points, or 1.61%, to 3,773.864. The tech-heavy Nasdaq Composite Index increased 332.70 points, or 2.55%, to 13,403.39.

Last week, the Dow closed 3.2% lower, the S&P 500 down 3.3% and Nasdaq Composite off 3.5%. In January 2021, the Dow lost 2%, the S&P 500 shed 1.1% and the Nasdaq Composite gained 1.7%.

Shares of big technology heavyweights Amazon (+4.3%) and Alphabet (+3.6%), which are set to report earnings Tuesday, both rose. Microsoft shares rose 3.3%. Redditor favourite AMC Entertainment (+0.3%) edged higher, while GameStop shares tumbled 30.8% as brokerages removed some trading restrictions. Tesla shares jumped 5.8% after an analyst more than doubled his price target on the electric-car maker. Silver miners Hecla Mining (+28.3%), Coeur Mining (+23.1%) and Wheaton Precious Metals (+5.4%) surged as silver broke above US$30 an ounce for the first time since 2013.

ECONOMIC NEWS: The Institute for Supply Management released manufacturing PMI report showing the pace of growth in U.S. manufacturing activity slowed more than expected in January. The ISM said its manufacturing PMI declined to 58.7 in January from a downwardly revised 60.5 in December.

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