One week on from a sharp correction, US stocks have built on Friday’s gains as the major indices rally from their worst weekly performance in two years.
The Dow Jones industrial average was at much as 369 points ahead in early trade before gains were trimmed, helped by gains for Cisco Systems and Apple of 2.7% and 2% respectively.
The Dow and S&P 500 both lost 5.2% last week, marking their worst weekly performance since January 2016. The Nasdaq composite dropped 5.1%, marking its biggest weekly retreat since February 2016. The indices also dipped into correction territory.
Markets are awaiting further news on reports that the White House is about to release details of its long-awaited infrastructure plan that includes $200bn for spending on various federal projects over 10 years.
The plan is to use the $200bn funding to stimulate up to $1.5 trillion in infrastructure improvements and could reshape how the federal government funds roads, bridges, highways and other infrastructure. The administration also promises to eliminate obstacles to completing projects that can delay road building for years.
Oil prices also posted sharp gains on the first day of the trading week, as markets regained some of the ground lost earlier this month. US crude traded at around $60.14, while Brent futures were around $63.64.