After two days of heavy selling that brought the S&P 500 to its lowest level in more than two months, US equities kicked off the week with a solid advance.
The S&P 500 rose 0.6 per cent to 2,017.2. The index sold off by almost 1.8 per cent on Friday in its ninth-steepest drop of 2015 as traders continued mulling the consequences of the Fed’s decision earlier in the week to increase short-term interest rates for the first time in almost a decade.
Every major S&P 500 sector was in the black in early trading. Financial and industrial shares were the biggest gainers. On the other side of the spectrum, utilities, and consumer staples logged the slimmest gains.
Energy prices were once again under pressure: US crude oil slumped 1.4 per cent to $34.23 a barrel. Brent, the international benchmark, slid 1.7 per cent to $36.25 a barrel, hitting its lowest intraday level since 2004.
There aren’t any major events on the economic calendar for Monday, but there are several key releases due-out later in the week. Among them are the closely-watched US durable goods report, which tracks orders for long-lasting goods, as well as a duo of readings on the housing market.
In currencies, the US dollar pulled back by 0.2 per cent against a basket of six global currencies. The euro climbed by 0.23 per cent against the greenback.
The yield on the benchmark 10-year US Treasury bond fell 0.01 percentage point to 2.19 per cent.
Trading volume tends to be light on the week of the Christmas holiday, which can exacerbate volatility. The VIX index, a measure of expected volatility over the next 30 days on the S&P 500, has jumped almost 30 per cent in December.