The Dow Jones gained 1.34%, its highest in a month and a half, the Nasdaq index rose 0.86% and the broader S&P 500 index gained 1.19%.

"US equities advanced on the back of the idea that the Fed will step on the brakes after next week's meeting," said Edward Moya of Oanda.

After weeks of turbulence, bond rates stabilized on Monday.

The yield on 10-year US government bonds stood at 4.24%, against 4.21% on Friday.

However, the 3-month rate, a close indicator that reflects short-term monetary policy expectations, crossed 4% for the first time in 15 years.

It is thus almost in line with the scenario of a further 0.75 percentage point increase in the Fed's key rate at the next meeting, which would bring it to a range of 3.75% to 4%.

The PMI index of industrial activity in the United States came out sharply lower in October, at 49.9 points against 52.0 in September, at its lowest level for 28 months, i.e. at the start of the coronavirus pandemic.

As for the PMI index for the services sector, it too recorded a marked contraction.

These two indicators lend credence to the thesis that the US economy is in retrograde, which could prompt the Fed to change its course.

For Andy Kapyrin, of Regent Atlantic, the start of the earnings season is proving to be "less bad than the market expected", which "fuels confidence" among investors.

The market has “hope that this crucial week for tech will also be good”, with publications from Microsoft and Alphabet on Tuesday, Meta on Wednesday, then Amazon and Apple on Thursday.

Before opening the ball, Microsoft (+2.12%) and Alphabet (+1.47%) were sought on Monday.

Despite these two consecutive sessions removed, Wall Street is not racing.

"For me, this is a momentum against the tide," says Nick Reece of Merk Investments.

In the medium term, the market "will again fall to its lowest levels" of the year and "the economy will enter recession next year", he announces.

On the stock market, the health sector stood out with, in the spotlight, the health insurer UnitedHealth (+1.47%), the biotech Amgen (+3.72%) or the pharmaceutical group Merck (+1, 72%).

Twitter (+3.27% to 51.52 dollars) approached a decisive week up for the platform.

The Delaware judge in charge of litigation with Elon Musk gave the entrepreneur until Friday evening to finalize the acquisition of the social network.

"We continue to expect the transaction to close this week," Wedbush Securities analysts wrote on Friday.

A sign that investors favor the hypothesis of a finalization of the takeover, the price of the group at the blue bird is now close to the price proposed by Elon Musk, or 54.20 dollars per share.

On the other hand, Tesla fell (-1.49% to 211.25 dollars), a rare value in the Nasdaq index to end in the red.

Some investors and analysts are worried about the possible sale of new titles by Elon Musk, managing director of the electric vehicle manufacturer, as well as possible interference from the Twitter file in the management of the group.

Chinese companies listed on Wall Street had a very bad day after Chinese President Xi Jinping's reappointment on Sunday.

Alibaba fell 12.51% to $63.15, while JD.com (-13.02%) and Pinduoduo (-24.61%) also dipped.

Same trajectory for Yum China (-13.96%), which controls the KFC, Taco Bell and Pizza Hut brands in China.

© 2022 AFP