The S&P 500 posted its largest one-day percentage gain since April as worries eased about a conflict between the U.S. and North Korea. Fred Katayama reports.
Wall Street rose solidly Monday, extended its recovery from last week's sell-off. Tech stocks led the broad-based rally. Investors were assuaged by comments U.S. officials made over the weekend playing down the risk that war would break out with North Korea. RegentAtlantic's Andy Kapyrin: SOUNDBITE: ANDY KAPYRIN, RESEARCH DIRECTOR, REGENTATLANTIC, (ENGLISH) SAYING: "What happened over the weekend is there was no additional escalation. We have two men that tend to speak before they think, and I think on better advice or a little bit of cooling off, this weekend has allowed things to settle down and become a little more stable." Tesla shares zoomed higher. Two brokerages hiked their price targets, citing the potential success of the electric car maker's mass-market sedan, the Model 3. Alibaba shares rallied. Activist investor Dan Loeb's Third Point bought 4.5 million shares in the Chinese e-commerce company, saying Alibaba consistently surpasses its growth estimates. Netflix shares fell. Barron's reports the stock could plunge by more than half by the end of the decade. It notes Disney is planning its own streaming service and Amazon's competing Prime video service is thriving. European shares closed higher, driven by utilities and bank stocks.