By Caroline Valetkevitch
NEW YORK (Reuters) -Major stock indexes gained sharply on Monday as investors awaited more quarterly results from some big U.S. companies this week, with U.S. Treasury yields edging lower ahead of upcoming U.S.-China trade discussions.
Gold prices rose more than 2% on expectations of further U.S. interest rate cuts and sustained safe-haven demand.
Investors are also monitoring the U.S. federal government shutdown, now in its 20th consecutive day. Key economic reports have not been published by government agencies as a result, although the September U.S. Consumer Price Index report is expected to be released on Friday.
The U.S. quarterly reporting period has unofficially entered its second week, and investors are keen to see reports this week from Tesla, IBM, Netflix, Procter & Gamble, Coca-Cola and other big names.
On Wall Street, the three major U.S. stock indexes each rose more than 1%, led by gains in Nasdaq. Technology was a leader among the benchmark S&P 500’s sectors.
“Some big, large-cap stalwarts are going to be reporting,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
“Of course, if we see some disappointing earnings, that could affect the market negatively. But investors come into the week with rose-colored glasses on, feeling very good about where we’ve gone this year.”
The Dow Jones Industrial Average rose 551.32 points, or 1.19%, to 46,741.93, the S&P 500 advanced 76.89 points, or 1.15%, to 6,740.90 and the Nasdaq Composite climbed 338.08 points, or 1.49%, to 23,018.06.
As U.S. regional banks’ earnings keep rolling in, some market watchers said tighter credit conditions could remove some froth in the market.
MSCI’s gauge of stocks across the globe rose 12.27 points, or 1.25%, to 996.17.
European shares closed higher as initial concerns over the stability of the U.S. banking sector eased.
The pan-European STOXX 600 index rose 1.03%.
Japan’s Nikkei jumped 2.8% to a record as a coalition deal set the stage for pro-stimulus Sanae Takaichi to become prime minister.
On the U.S. trade front, U.S. Treasury Secretary Scott Bessent said on Friday he expects to meet this week with Chinese Vice Premier He Lifeng in Malaysia to try to forestall an escalation of U.S. tariffs on Chinese goods that U.S. President Donald Trump said was unsustainable.
Trump also confirmed he would meet with Chinese President Xi Jinping in two weeks in South Korea and expressed admiration for the Chinese leader.
The yield on benchmark U.S. 10-year notes fell 2.3 basis points to 3.986%, from 4.009% late on Friday.
The dollar was little changed against the yen and other currencies. Markets were reducing the odds of a Bank of Japan rate hike this month to just over 20%, while in France, political tensions eased.
The Federal Reserve still is widely expected to cut interest rates by a quarter-point next month and again in December.
The dollar index, which measures the greenback against a basket of currencies, rose 0.03% to 98.56, with the euro down 0.03% at $1.1648. Against the Japanese yen, the dollar was last up 0.02%.
Spot gold rose 2.7% to $4,363.34 an ounce, while oil prices settled at their lowest since early May amid worries about a potential supply glut.
Brent crude futures fell 28 cents, or 0.46%, to settle at $61.01 a barrel. U.S. West Texas Intermediate futures eased 2 cents, or 0.03%, to $57.52.
(Reporting by Caroline Valetkevitch in New York and Naomi Rovnick in London; additional reporting by Wayne Cole in Sydney; Editing by Alex Richardson, Jan Harvey and Richard Chang)
