Stock Buyers Power Biggest S&P 500 Rally Since May: Markets Wrap

A renewed wave of dip buying lifted stocks, with traders sifting through solid earnings amid bets the Federal Reserve will soon cut rates. Bonds saw small moves ahead of a heavy slate of US debt sales.

The rebound in risk appetite drove the S&P 500 up 1.5%, its biggest rally since May. Almost every major group in the US equity benchmark advanced, and about 85% of its companies closed higher. Tech megacaps, which bore the brunt of the recent selling, led gains on Monday. Nvidia Corp. and Meta Platforms Inc. climbed at least 3.5%. The Russell 2000 index of small firms added 2.1%.