U.S. stocks mounted a broad rally on Monday, snapping a three-day losing streak as investors moved past concerns that the terrorist attacks in Paris could spell big trouble for the global economy.
Oil and gas stocks were among the biggest gainers the price of crude rose. Traders also bid up shares in defense contractors, while travel-related stocks slumped.
Friday’s attacks in Paris, which killed 129 people, are not likely to negatively affect the economies of the U.S. or Europe, said Wells Fargo Investment Institute strategist Scott Wren.
“Are consumers going to be staying at home and not out spending money because they’re afraid that if they go anywhere they’re going to be victims of a terrorist attack?” Wren said. “That might be the case if you saw a series of these things. But hopefully that’s not what’s going to happen and the economy is not going to be affected.”
All told, the Dow Jones industrial average rose 237.77 points to 17,483.01. The Standard & Poor’s 500 index gained 30.15 points to 2,053.19. The Nasdaq composite added 56.73 points to 4,984.62.
The major market indexes started lower but rebounded within the first 10 minutes as investors piled into consumer staples stocks, a category that includes Coca-Cola and Procter & Gamble.
Stocks began to climb steadily by midday as crude oil prices perked up, pushing up energy stocks. The energy sector in the S&P 500 surged 3.3 percent, far more than the rest of the market. Consol Energy added 56 cents to $7.96. Cabot Oil & Gas gained $1.82 to $22.56, while Range Resources rose $2.90 to $34.62.
The energy sector has been the biggest laggard among industries this year, down 14.9 percent, as the slide in oil prices has deepened. Benchmark U.S. crude oil climbed $1 to close at $41.74 a barrel in New York.
The prospects of intensified military action to counteract terror threats helped give defense contractors a boost. Northrop Grumman gained $7.79 to $186.61, while Lockheed Martin added $7.51 to $220.67. Raytheon rose $4.86 percent, to $121.11.
Traders moved to unload some travel-related stocks.
Priceline Group slid $30.88 to $1,266.87, and Expedia declined $2.67 to $122.53. Delta Air Lines lost $1.06 to $47.93.
