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Stock market live updates: Dow jumps 400 points, best day in 2 weeks, banks rally

This is CNBC's markets live blog that was updated throughout the day. 

Stocks rose sharply on Monday as a broad-based rally followed another down week for the Dow and S&P 500. Bank stocks outperformed the broader market while tech giants Apple and Amazon rose as well. Market sentiment was helped by some movement on Capitol Hill toward another relief bill and newly announced corporate dealmaking.

Monday's rally by the numbers

  • S&P 500 closed up 1.61% for its third straight positive day and best day since Sept. 9 when the S&P gained 2.01%
  • S&P just missed closing above its 50-day moving average level of 3,353.47
  • S&P is down 4.25% this month, on pace for its first negative month since March  
  • S&P is 6.59% below its intraday all-time high of 3,588.11 from Sept. 2
  • Dow closed up 1.51% for its best day since Sept. 9 when the Dow gained 1.6% and closed above its 50-day moving average level of 27,545.78 for the first time since Sept. 18 
  • Dow is down 2.98% this month, on pace for its first negative month since March  
  • Dow is 6.71% below its intraday all-time high of 29,568.57 from Feb. 12 
  • Nasdaq Composite closed up 1.87% for its third straight positive day
  • Nasdaq is down 5.59% this month
  • All 11 sectors were positive Monday, led by energy, which gained 2.33%. — Gina Francolla, Yun Li

Dow pops more than 400 points to start the week

The stock market clawed back some of the losses from a previous four-week losing streak. The Dow jumped 410 points to start the week as investors flocked to cyclical and reopening stocks including financials and airlines. The S&P 500 gained 1.6% on Monday, while the Nasdaq rose 1.9%. — Yun Li

Final hour of trading: Stocks start the new week on the right foot

The major averages were sharply higher on Monday, building on the strong gains from Friday's session, as a slew of corporate dealmaking activity and hope around new U.S. coronavirus aid lifted market sentiment. The Dow climbed 518 points, or 1.9%. The S&P 500 surged 1.8% along with the Nasdaq Composite. —Fred Imbert

Fed's Mester says inclusion is vital for economic growth

Economic growth needs to be more evenly distributed for the U.S. to reach its potential, Cleveland Fed President Loretta Mester said Monday. The central bank official noted efforts the Fed is taking to create a more inclusive economy, namely its recently stated intention to keep interest rates low to achieve full and broad-based employment, even if inflation runs a little hot. "Unless actions are taken to promote an inclusive economy – one in which people have the chance to move themselves and their families out of poverty, one in which systemic racism does not limit opportunities, and one in which all people can fully participate – the U.S. economy will not be able to live up to its full potential and the country will suffer," Mester told the African American Chamber of Commerce of Western Pennsylvania. She spoke the same day that a Fed report showed that income gains for Blacks outpaced those of other races from 2016-19, though she noted that Covid-19 has had a disproportionately negative impact on Blacks. — Jeff Cox

Investors could be in trouble if S&P 500 closes below 3,100: Ned Davis Research

Ned Davis, senior investment strategist at Ned Davis Research, said in a note Monday that a close below 3,100 for the S&P 500 could signal more pain ahead for investors.

"We don't want to have a huge mistake. So, when the weight of the trend evidence deteriorates, I want to be hedged and defensive," said Davis.

Despite Monday's rally, the S&P 500 was down more than 4% for the month and was on pace for its first monthly loss since the March sell-off. This drop comes amid concern over further coronavirus stimulus from Washington and a drop in major tech names.

Davis also advised investors to keep an eye on the S&P 500's 200-day moving average and how it is "smoothing" just above the 3,100 mark.

"A break below there would put prices below where they have averaged for the last 40 weeks, and leave many people with potential losses," he said. "In conclusion, my analysis of these five indicators tells me to get cautious should we close below 3,100." —Fred Imbert

Stocks making the biggest headlines in midday trading

Cleveland-CliffsArcelorMittal —Shares of the two mining companies jumped 9.3% and 10.5%, respectively, after Cleveland-Cliffs agreed to buy ArcelorMittal's U.S. operations for $1.4 billion.

Sina Corp — Sina's stock popped more than 6% after the Chinese social-media giant said it will go private in a deal that values the company at $2.59 billion.

Snap — Snap shares rose more than 4% after Guggenheim upgraded the social media company to buy from neutral.

Plug Power — Shares of the fuel-cell maker popped more than 13% after a Morgan Stanley analyst upgraded the company to overweight from equal weight. 

Click here to read more about the biggest movers. — Fred Imbert, Yun Li

Siegel sees strong year for stocks in 2021 'no matter who is president'

Jeremy Siegel told CNBC he sees multiple factors that are likely to push the stock market higher next year, regardless of the outcome of November's election between President Donald Trump and Democratic nominee Joe Biden. 

The long-time market bull pointed to the increased liquidity from coronavirus stimulus programs and the likelihood the Covid-19 situation in the U.S. will improve next year. The Wharton School professor also cited increased worker productivity helping boost corporate profits. 

"I think the chances are this bull market can continue in the next year, just on those factors," Siegel said on "Squawk on the Street." "I think the market ... is looking forward to a really good 2021 no matter who is president." - Kevin Stankiewicz 

Advancers lead decliners by more than 6 to 1 at NYSE

More than six stocks traded higher at the New York Stock Exchange for every decliner on Monday as Wall Street kicked off the week on the right foot. Overall, 2,553 NYSE-listed names were higher while only 382 declined, FactSet data shows. —Fred Imbert

Devon Energy, WPX Energy to merge

Devon Energy and WPX Energy announced Monday that they will merge in an all-stock deal that gives the combined company, which will retain Devon Energy's name, an enterprise value of approximately $12 billion. 

"This deal represents the form of shale company consolidation that many across the industry have been looking for," said Andrew Dittmar, senior M&A analyst at Enverus. "You have two E&Ps with complimentary positions agreeing to an equity exchange at little-to-no premium. The selling point for investors is that the larger combined company will have the scale and efficiencies to navigate a challenging price environment and generate free cash flow for its investors."

Shares of Devon Energy advanced 11%, while WPX Energy gained 14%. - Pippa Stevens 

Markets at midday: Stocks rally to start the week

The major averages were sharply higher on Monday as a slew of dealmaking activity, along with gains in bank and tech stocks, lifted market sentiment. The Dow traded 490 points higher, or 1.8%.  The S&P 500 popped 1.5% and the Nasdaq Composite advanced 1.3%. —Fred Imbert

Plug Power jumps following upgrade

Shares of Plug Power were about 13% higher during midday trading on Monday following an upgrade to overweight at Morgan Stanley. The firm said the fuel-cell maker has "rapid growth potential" driven by "advancements in scale, technology and customer relationships."

CNBC PRO subscribers can read more here. - Pippa Stevens

Uber climbs after securing London license

Shares of Uber rose roughly 5% on Monday after the ride-sharing company secured a new 18-month license to operate in London. The city's transportation authority had previously stripped the license from Uber, but a judge ruled in favor of the company on Monday. London is the largest European market for Uber. — Jesse Pound, Ryan Browne

Dow extends gain to 500

The market continued to push higher in the opening hour of trading, with the Dow's climb reaching 500 points for the session. The average is now up about 1.9%, putting it slightly ahead of the S&P 500 and the Nasdaq Composite. — Jesse Pound

Bank stocks surge

The SPDR S&P Bank ETF (KBE) rose 3% in early trading, on pace for its third straight positive day and best day since Aug. 24 when the KBE gained 3.95%. The largest banks — JPMorgan, Bank of America, Wells Fargo, Citi — are all up about 2% or greater so far today. — Gina Francolla

Broad rally in opening minutes

The strong open for the market on Monday morning was lifted by nearly every corner of the S&P 500. There were 494 advancing stocks in the index compared to just 7 declining stocks, according to FactSet. — Jesse Pound

Stocks open sharply higher

The major indexes opened higher on Monday as stocks look to shake off their September slump. The Dow rose 360 points, or 1.3%, while the S&P 500 and Nasdaq Composite rose 1.4% and 1.5%, respectively. The Dow and S&P 500 have had four consecutive negative weeks, while the Nasdaq has lost ground in three of the past four weeks. — Jesse Pound

Inovio shares drop after FDA puts hold on covid vaccine trial

Inovio Pharmaceuticals shares were down more than 34% in the premarket on news the Food and Drug Administration put a partial hold on the company's coronavirus vaccine trial. The hold comes amid questions over Inovio's Cellectra 2000 delivery device, which is being used in the trial. Inovio said it plans to respond to the FDA's concerns in October. —Fred Imbert

Deutsche Bank upgrades FedEx

Wall Street continued to get more bullish on delivery stocks as Deutsche Bank upgraded FedEx to buy from hold. The firm already has a buy rating on UPS. Shares of FedEx rose 2% in light premarket trading.

Pro subscribers can read more about the call here. — Jesse Pound

Virgin Galactic stock set to jump 10% after buy recommendations from Bank of America, Susquehanna

Shares of Virgin Galactic rose as much as 10% in premarket trading Monday after the space tourism stock got its seventh and eighth buy ratings from Bank of America and Susquehanna, respectively. Wall Street continues to be unanimously bullish on Virgin Galactic as,  in addition to the two most recent recommendations, the stock has the equivalent of buy ratings from Morgan Stanley, Vertical Research Partners, Cowen, UBS, Credit Suisse and Alembic Global Advisors.

"While Virgin Galactic is not yet operational, the company is gearing up to begin serving customers in early 2021. We believe SPCE's growth potential is unparalleled vs. our coverage and the current nascent stages of the company provide investors with a unique entry point into the stock," Bank of America analyst Ron Epstein wrote a note to investors. – Michael Sheetz

Pelosi says stimulus deal still possible

House Speaker Nancy Pelosi said on Sunday that another Covid-19 stimulus package is still possible. House Democrats are trying to forge ahead with a smaller aid package costing about $2.4 trillion, which is around $1 trillion less than their initial proposal but more than what President Donald Trump's administration has signaled it will accept. 

Stimulus negotiations between House Democrats and the Trump administration fell apart in early August, though Treasury Secretary Steven Mnuchin said he and Pelosi have agreed to restart talks.

The chamber could vote on the bill as soon as this week. The legislation will include unemployment benefits, direct payments to Americans, Paycheck Protection Program small business loans and aid for airlines.

"When I have a conversation with the administration, it is in good faith. I trust Secretary Mnuchin to represent something that can reach a solution, and I believe we can come to an agreement," Pelosi said in an interview on CNN. - Emma Newburger, Pippa Stevens 

Prime Day set for mid-October

Amazon's Prime Day event will be on Oct. 13 and 14 this year after originally being delayed due to the pandemic, the company announced. The promotion usually leads to the biggest sales periods of the year for the e-commerce giant. The event is typically held in July but was delayed amid a surge in online shopping during the pandemic. — Jesse Pound

Snap, Spotify jump after Guggenheim upgrade

Shares of Snap jumped more than 3% during premarket trading on Monday while Spotify was up more than 2% after the stocks were upgraded at Guggenheim.

"We also believe that investors generally underestimate the long-term advertising market growth potential and as such, under-appreciate the sustained revenue and profit growth potential for internet companies," the firm said in a note to clients Monday.

Spotify was double upgraded to buy from sell, with Guggenheim lifting its price target from $232 to $250. Snap, meanwhile, was upgraded to buy from neutral, with a new target of $28. - Pippa Stevens 

Judge blocks White House's ban on TikTok downloads from U.S. app stores

A judge blocked an order on Sunday from the Trump administration that would have banned TikTok from being downloaded from U.S. app stores.  Judge Carl Nichols of United States District Court for the District of Columbia granted an injunction against that order up against the Sunday deadline for the ban. Judge Nichols did not block a much broader ban set to come into effect on Nov. 12 in the U.S., which could effectively eliminate TikTok. The terms of a deal to create a U.S.-based TikTok Global still remain fluid with ByteDance, Oracle and Walmart still needing to finalize the ownership structure of the new entity.  — Maggie Fitzgerald, Arjun Kharpal

Stock futures surge as Wall Street rebounds from 4-week slide

U.S. stock futures rose sharply on Monday as traders tried to recover from the market's fourth consecutive weekly decline. Dow Jones Industrial Average futures were up 363 points, or 1.3%. S&P 500 futures climbed 1.4% and Nasdaq 100 futures popped 1.8%. Shares of major tech companies — Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft — helped drive the early gains as they were all up more than 1%. —Fred Imbert