DJIA +1293.96 at 26703.29, NAS Comp +384.80 at 8952.17, S&P 500 +136.01 at 3090.23
The major averages spiked Monday with the S&P 500 recording its 1st gainer since 19 February.
The US economy is likely growing at a 2.7% annualized rate in Q-1, based on the latest economic data, the Atlanta Federal Reserve’s GDPNow forecast model showed Monday. That compared to a 2.6% pace estimated by the Atlanta Fed’s GDP program issued late last week.
The Atlanta Fed revisions came hours after US factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the coronavirus outbreak, which has revived financial market fears of a recession.
The Institute for Supply Management (ISM) said its index of national factory activity fell to a reading of 50.1 last month from 50.9 in January. Economists polled by Reuters had forecast the index would slip to 50.5 in February.
A reading above 50 indicates expansion in the manufacturing sector, which accounts for 11% of the US economy.
A separate report Monday from the data firm IHS Markit showed its final Manufacturing Purchasing Managers’ Index slid to 50.7 in February from 51.9 in January.
A 3rd report Monday from the US Commerce Department showed construction spending surged 1.8% to a record high of $1.369-T as investment in both private and public projects increased.
President Trump Monday reiterated his call for Chairman Powell to lower interest rates.
President Trump Tweeted that the Fed has been “slow to act” and should be more aggressive.
The market believes that the Fed will follow the President’s directive very soon.