U.S. stocks rose as commodity shares led a rebound from the worst weekly decline since August, while investors assessed the fallout from terrorist attacks in Paris.
The Standard & Poor’s 500 Index rose 0.4 percent to 2,031.19 at 9:44 a.m. in New York, after sinking 1.1 percent Friday to a three-week low. The Dow Jones Industrial Average added 62.26 points, or 0.4 percent, to 17,307.50. The Nasdaq Composite Index gained 0.1 percent.
“You wouldn’t expect the attack to have a lasting impact on financial markets,” said Frances Hudson an Edinburgh-based global thematic strategist at Standard Life Investments, which oversees $393 billion. “It might be that the markets start looking again at fundamentals and company news. The U.S. was off quite a long way on Friday. You would expect to see a bit of recovery from there.”
Coordinated assaults late Friday linked to Islamist radicals killed at least 129 people in seven locations in Paris, in Europe’s worst terrorist attack in at least a decade. France dispatched warplanes to bomb Islamic State’s Syrian nerve center while police conducted raids suspects on suspected Islamic radicals in all of France’s major cities.
The S&P 500 on Friday capped its worst weekly drop since August, snapping six straight weeks of gains amid mounting expectations that the Federal Reserve is preparing to raise interest rates as soon as December. Retailer and apparel companies tumbled after weaker-than-forecast earnings and sales data, posting their worst week in four years.
Energy shares also slumped amid their biggest weekly retreat since August as crude-oil prices dropped to their lowest level in more than two months. The Chicago Board Options Exchange Volatility Index jumped 40 percent last week, the most since August, to a six-week high.
The benchmark equity index is now 5 percent away from its record set in May, after rising to within 1 percent of the all-time high on Nov. 3. The S&P 500 has fallen in seven of the last eight sessions after Fed Chair Janet Yellen said policy makers’ December meeting was a “live possibility” for a rate increase.
Traders are pricing in a 64 percent probability that the Fed will raise rates next month. Investors will assess data this week on consumer prices, factory activity and housing starts for further clues on the probability of higher rates this year. Minutes from the central bank’s October policy meeting will be released on Wednesday. A reading today on New York area manufacturing activity in November contracted more than expected, according to estimates from economists surveyed by Bloomberg.