(Reuters) - The S&P 500 was on track to recoup about $1 trillion in market value on Monday in a frantic rally after New York, the biggest U.S. coronavirus hot spot, reported a fall in daily deaths, raising hopes that the pandemic could level-off soon.
All three main stock indexes jumped more than 4%, with gains led by utilities .SPLRCU, real estate .SPLRCR and consumer staples .SPLRCS stocks - broadly considered the safest bets at times of extreme volatility.
The S&P 500 banking index .SPXBK soared 7.3% and was set for its best day in more than a week, with Bank of America (BAC.N), Citigroup (C.N), Wells Fargo (WFC.N) and JP Morgan (JPM.N) advancing between 5% and 8%, tracking Treasury yields.
“Seeing signs of stabilization in New York City is probably the most important thing given the amount of capital that’s controlled through managers that live in the area,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
“It’s a tremendous relief for the market (but it’s) not to say that we’re through the woods yet, because we’re going to have a tough week or two ahead.”
The S&P 500 .SPX has fallen more than 20% since its all-time highs in mid-February, marked by wild day-to-day price swings, as the novel coronavirus brought business activity to a virtual halt and sparked mass layoffs.