On Sunday evening, stock futures plunged but recovered, and the market seesawed before rallying hard Monday afternoon. The S&P ended up 30, or 1.5 percent, at 2,053. U.S. oil futures, which also moved lower temporarily, ended up finishing the day with sharp gains of 2.5 percent, at $41.78 per barrel. Stocks rallied along with crude, and Exxon and Chevron had the most positive impact on the Dow.
"I think (the stock market rally) has more to do with how much it went down last week in one of the most significant pullbacks since it came off the lows," said Jim Paulsen, chief investment strategist at Wells Capital Management. "As bad as it was in Paris, I don't know if it will have that much fallout on the economy." The S&P 500 was off 3.6 percent last week, and West Texas Intermediate crude futures were down 8 percent.
In the bond market, the two-year yield was higher, at 0.84 percent. The two-year is the most sensitive to Fed policy. Even though stock traders speculated terror attacks could hold off a U.S. central bank rate hike, the bond market traded on the view that the Fed is likely to raise rates in December.
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