May 23 (UPI) — U.S. markets bounced back on Monday as investors bought up downtrodden stocks amid a lengthy losing streak.
The Dow Jones Industrial Average gained 618.34 points, or 1.98%, while the S&P 500 rose 1.86%, climbing out of bear market territory and the Nasdaq Composite ended the day up 1.59%.
The S&P 500 ended Monday’s session at 3,973.75, still down 17% from its recent record high on Jan. 3 as markets had been taking a beating lately.
An index is considered to have entered a bear market when it drops 20% from its last peak.
On Friday, U.S. stocks marked the longest streak of weekly losses since 2001 by the end of trading Friday as the S&P 500 briefly dropped into the bear market territory.
The market followed trends in Japan, Germany and London, which all showed gains at or near the end of their trading days.
Despite the positive turn, investors were skeptical that Monday’s gains indicate a broader trend.
“This impulse has failed multiple times over the past several weeks,” Ross Mayfield, an investment strategy analyst at Baird, told CNBC. “The bar is higher now for sustained positive performance given all of the well-known headwinds.”
Bank stocks were among the driving factors for Monday’s gains as shares of JPMorgan Chase climbed 6.19% after projecting it will reach key returns targets sooner than expected due to rising rates.
Citi stock rose 6.07%, Bank of America climbed 5.94% and Wells Fargo gained 5.16%.
Retail stocks were also on the rise with Ross Stores stock climbing 9.57% and TJX gaining 4.22%.
Other major retailers including Costco, Dollar General, Nordstrom and Macy’s are set to report quarterly earnings later this week.