NEW YORK -- U.S. stocks bounced back Monday after losing ground for three weeks as the dollar's rally against the euro abated.
The Standard & Poor's 500 index rose 27.79 points, or 1.4 percent, to 2,081.19. It was the biggest gain for the index in six weeks.
The Dow Jones industrial average climbed 228.11 points, or 1.3 percent, to 17,977.42. The Nasdaq composite jumped 57.75 points, or 1.2 percent, to 4,929.51.
Elsewhere in financial markets, oil closed at a six-year low, below $44 a barrel, as supplies continue to outpace demand. Treasurys gained after some mixed reports on the economy.
The stock market has stumbled in recent weeks as the dollar has surged against the euro. The U.S. currency has been rising on expectations that the Federal Reserve will start to raise interest rates even as the European Central Bank provides stimulus to that region's economy.
A stronger dollar is a problem for big U.S. companies that rely on overseas sales because it makes their goods more expensive in foreign markets and reduces the value of the profits they bring back home to the U.S.
"The dollar was weaker today, which was helpful," said Quincy Krosby, a market strategist at Prudential Financial. "There's no doubt that the stronger dollar has been impeding sales."
The focal point this week for investors is the Fed's two-day policy meeting that starts today. Many investors and analysts expect the U.S. central bank will signal in a statement after the meeting that it is considering raising interest rates later this year. The Fed has kept its benchmark lending rate near zero for more than six years, underpinning a strong rally in U.S. stocks.
Investors also will look for any comments Fed policymakers make on the impact to the economy of the rapid surge in the dollar, Krosby said.
The economic data gave a lift to bond prices, pushing Treasury yields lower. The yield on the 10-year Treasury note dropped to 2.08 percent from 2.12 percent Friday.
Health care stocks were the biggest gainers of the 10 industry groups that make up the S&P 500, rising 2.2 percent. Gains for the sector were led by Edwards Lifesciences, a company that develops and manufactures products to treat heart disease. On Sunday, the company announced positive study results for the medical device maker's third-generation heart-valve replacement system.
The company's stock climbed $13.29, or 9.8 percent, to $148.64, making it the biggest gainer in the S&P 500.
Avon Products was the biggest loser in the index. The cosmetics company's stock is being removed from the S&P 500 on Friday. It will be replaced by menswear company Hanesbrands. Avon fell 44 cents, or 5.7 percent, to $7.28.
Oil fell to its lowest level in six years on continuing expectations that rising supplies in the U.S. are far outpacing demand. Benchmark U.S. crude fell 96 cents to close at $43.88 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.23 to close at $53.44 in London.
Business on 03/17/2015