U.S. stocks finished sharply higher on Monday as investors were optimistic about the start of earnings season with transportation sector stocks moving higher.
Investors were monitoring the Israeli war in Gaza, but seemed to be adopting a more risky attitude, with the fall in the price of safe-haven gold.
Results of major banks Goldman Sachs, Bank of America, Morgan Stanley, pharmaceutical giant Johnson & Johnson, electric vehicle maker Tesla and video streaming pioneer Netflix are expected to arrive this week.
Third quarter results for S&P500 companies are estimated to have grown 2.2 percent year-on-year, according to LSEG data on Friday.
“At least for today (Monday), it’s a market that’s having a stronger earnings season, a stronger week in terms of earnings,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, in North Carolina.
At the same time, world leaders are trying to ensure the Middle East conflict “remains contained,” she said.
The Dow Jones index rose 0.9 percent, the S&The P 500 gained 1.1 percent and the Nasdaq Composite rose 1.2 percent.