Wall Street Rebounds as Brexit Worries Subside

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Wall Street rose sharply on Monday, with the S&P and the Dow recovering last week’s losses after the latest polls showed an increased possibility of Britain remaining in the European Union.

Uncertainties about the ramifications of Britain’s exit in a vote on Thursday sent global markets into a tizzy last week as investors fled to safe-haven assets such as the yen and gold.

However, polls showed that the “Remain” campaign had gathered favor over the weekend.

“If I had a seatbelt while watching the markets, I’d put it on,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

“It’s still a very close call, but this at least gives the markets a little bit of hope.”

At 10:52 a.m. ET (1452 GMT), the Dow Jones Industrial Average was up 241 points, or 1.36 percent, at 17,916.16. The index recorded the biggest percentage gain in nearly four months.

The S&P 500 was up 25.59 points, or 1.24 percent, at 2,096.81.

The Nasdaq Composite was up 78.86 points, or 1.64 percent, at 4,879.20.

Eight of the 10 major S&P indexes were higher, led by a 1.87 percent rise in financials.

Wells Fargo’s 2.7 percent rise gave the S&P the biggest boost, while the Dow was lifted the most by a 2.8 percent rise in Goldman Sachs.

While equities rebounded, safe havens retreated. Gold fell more than 1 percent. Barrick Gold, the world’s largest gold producer, was down 3.3 percent.

Oil prices were on track for their largest two-day rise in a month.

Marathon Oil jumped 8 percent to $14.23 after announcing the $888 million acquisition of PayRock Energy.

Boeing rose 3 percent to $133.67 on news that Iran had reached a deal to buy 100 planes.

Advancing issues outnumbered decliners on the NYSE by 2,474 to 427. On the Nasdaq, 2,248 issues rose and 417 fell.

The S&P 500 index showed 31 new 52-week highs and no new lows, while the Nasdaq recorded 46 new highs and 19 new lows.

Source: FOX Business

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