Wall Street snapped a five-day losing streak on Monday (Mar 11), despite from sharp losses early in the session for Boeing following Sunday’s crash involving one of its a top-selling passenger jets.
The gains for US stocks recovered much of last week’s lost ground and came despite data showing weakness in the American retail sector.
Shares in Boeing fell 5.3 per cent for the day, paring earlier losses of more than 12 per cent that threatened to wipe out tens of billions of the company’s market value.
Two of the company’s highly popular 737 MAX 8 jets have crashed in five months, after the latest tragedy killed all 157 passengers crew aboard shortly after takeoff from Addis Ababa.
The benchmark Dow Jones Industrial Average, in which Boeing’s stock is heavily weighted, rose 200.64 points (0.79 per cent) to 25,650.88.
The broader S&P 500 jumped 40.23 points (1.47 per cent) to 2,783.30 while the tech-heavy Nasdaq rose a solid 149.92 points (2.02 per cent) to 7,558.06.
Investors were comforted by Sunday’s broadcast remarks from Federal Reserve Chairman Jerome Powell, who reiterated that the central bank would be “patient” before raising interest rates again.
“He confirmed everything we knew: patience, confidence in the economy and the labour market, the Fed’s independence,” Gregori Volokhine of Meeschaert Financial Services told AFP.
“But above all he gave the impression of stability, which is an extremely reassuring position at the head of a body as important as the Fed.”
iPhone maker Apple soared 3.5 per cent following an upgrade from analysts at Bank of America.
The Commerce Department meanwhile reported US retail sales had recovered slightly after a dismal December, pointing to slower growth at least in the first quarter of this year.