(Reuters) - U.S. stocks rallied on Monday, boosted by heavyweight technology shares and on surprise strength in U.S. manufacturing activity, following a sharp selloff last week on concerns about the economic impact from the fast-spreading coronavirus out of China.
U.S. factory activity rebounded in January after contracting for five straight months amid a surge in new orders, according to the Institute for Supply Management (ISM).
“Investors are looking beyond the potential negative impacts of the coronavirus,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. “Historically, these events have proven to be a buying opportunity for investors, and there could be an element of folks getting comfortable with where we are with the coronavirus moving forward.”
The Dow Jones Industrial Average rose 143.78 points, or 0.51%, to 28,399.81, the S&P 500 gained 23.4 points, or 0.73%, to 3,248.92, and the Nasdaq Composite added 122.47 points, or 1.34%, to 9,273.40.
Microsoft shares rose 2.4%, leading a 1.3% rise for the S&P 500 technology sector.
Shares of Google parent Alphabet Inc gained 3.5% ahead of the company’s quarterly results. But the shares fell in after-market trading, wiping out the day’s gains, following release of the results.
The energy sector slumped 1.3% as crude prices dropped.
Investors were eyeing a busy U.S. political week. Democrats in Iowa kick off the party’s nominating process on Monday with the state caucuses.
The U.S. Senate was due to vote on Wednesday on whether to remove President Donald Trump from office following the impeachment process, with the Republican-controlled body widely expected to acquit him.
“The uncertainty caused by
