By Anna Isaac and Alexander Osipovich
Gains by banks and energy companies lifted major U.S. stock indexes on Monday, helping the market claw back some lost ground after four consecutive weeks of declines.
The Dow Jones Industrial Average advanced 528 points, or 1.9%, in afternoon trading. The S&P 500 rose 1.8%, while the technology-heavy Nasdaq Composite climbed 1.6%.
The rally came as investors said last week’s selloff was overdone.
“There’s been a lot of froth in markets recently that has been washed out. The underlying fundamentals are all moving in the right direction,” said Hani Redha, a portfolio manager at PineBridge Investments. “We are in the early stages of a multiyear expansion. It will remain volatile in the coming weeks, but overall the trend will remain upward.”
The financial and energy sectors, which tend to be sensitive to economic trends, were among Monday’s strongest performers. Citigroup and Morgan Stanley were