The S&P 500 moved higher to start the week, extending two weeks of gains, as investors shook off recession worries and bid tech shares higher.
The Dow Jones Industrial Average gained nearly 95 points. The S&P 500 rose 0.7%, and the technology-heavy Nasdaq Composite rallied 1.3%, helped by a 8% pop in Tesla’s stock.
While recessionary signs in the bond market are worrying some investors, a bullish signal played out on Monday. Oil prices dropped sharply. U.S. West Texas Intermediate crude futures slid about 7% to settle at $105.96. Brent crude futures settled nearly 7% lower at $112.48 per barrel.
Also boosting sentiment, the Cboe volatility index, which is known as Wall Street's fear gauge, slipped below 20 for the first time since Jan. 14.
On the bearish side, part of the Treasury yield curve briefly inverted on Monday, raising some recession fears. Earlier in the day, the yield on the 5-year Treasury note rose to 2.6361%, while the 30-year yield was down less than 1 basis point to 2.6004%. The curve has since reversed its inversion.
For now, the closely watched yield spread between the 2-year and the 10-year rate remained positive.
