Energy stocks lead US rally

Associated Press

U.S. stocks mounted a broad rally 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 as the price of crude rose. Traders also bid up shares in defense contractors, while travel-related stocks slumped.

The gains followed a mixed day in European markets, which shook off an early loss and ended mixed.

Friday’s attacks in Paris, which killed 129 people, are not likely to negatively affect the economies of the U.S. or Europe, said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute.

“It all comes down to, 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, or 1.4 percent, to 17,483.01. The Standard & Poor’s 500 index gained 30.15 points, or 1.5 percent, to 2,053.19. The Nasdaq composite added 56.74 points, or 1.2 percent, to 4,984.62.

Monday’s rally helped lift the market after its biggest weekly loss since August.

The market action got off to a somber start as the New York Stock Exchange paused to observe a moment of silence shortly before the start of regular trading.

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 household products maker Procter & Gamble. Stocks wavered for a while, but began to climb steadily by midday as crude oil prices perked up, pushing up energy stocks.