Investors shake off losing streak, bid major indices higher

Wall Street took a deep breath Monday, with a gleeful relief rally bubbling up despite the cloud of uncertainty that has cast a pall over much of 2022 trading.

Not much has fundamentally changed since last week’s roller coaster, but the immediate absence of more bad news combined with opportunities to “buy the dip” after recent sell-offs was enough to power Monday’s recovery. Still, the global and economic undercurrents that have roiled markets for weeks remain and show no signs of abating.

The Dow Jones industrial average closed up more than 600 points, nearly 2%, as the blue-chip index attempts to shake off an eight-week losing streak — its longest in nearly a century. The broader S&P 500 advanced nearly 1.9 while the Nasdaq gained nearly 1.6%.

The S&P 500 remains on the precipice of a bear market — defined as a 20% fall from the most recent high — having dipped into that terrain Friday before squeaking out a last-minute reprieve. The tech-heavy Nasdaq is already down more than 27% for the year, and the Dow is off more than 12%.

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