NEW YORK — So much for Irene.
Stocks rose broadly Monday, led by insurance companies, after it became clear that the tropical storm caused far less damage than many had feared. The Dow Jones industrial average jumped 255 points.
Trading volume, or the number of shares bought and sold, was the lowest since July 26 as many traders struggled to get to work in Lower Manhattan or were still on vacation.
Insurance stocks rose sharply as analysts lowered their estimates of how much damage the storm would cause.
Kinetic Analysis Corp., a consulting firm, lowered its estimate of storm damage from $20 billion late Thursday to $7 billion late Sunday as the storm weakened. Of that amount, insurers probably would have to cover up to $3 billion, Kinetic said. That’s less than the $6 billion the industry paid out after Hurricane Isabel struck the region in 2003.
“The U.S. came more or less unscathed through the hurricane,” said Kim Caughey Forrest, equity-research analyst at Fort Pitt Capital Group. “The cleanup isn’t going to cost as much as anticipated.”
Utilities companies also rose after it became clear their storm-related expenses would be lower than earlier estimates.
The New York Stock Exchange and other major U.S. exchanges opened as usual Monday after making extensive preparations over the weekend. At the NYSE, executives brought in dozens of cots so employees could sleep there to be ready for the opening bell.
The Dow Jones industrial average rose 254.71 points, or 2.3 percent, to close at 11,539.25. It is down 0.3 percent for the year. It had been down as much as 7.4 percent for the year Aug. 10. The Standard & Poor’s 500 index rose 33.28 points, or 2.8 percent, to 1,210.08. The widely used market benchmark has gained back all of the ground it lost since hitting a 2011 low Aug. 8.
The technology-focused Nasdaq composite index rose 82.26, or 3.3 percent, to 2,562.11.
