US STOCKS-Wall Street bounces back; retail trading focus shifts to silver

  • Reuters
  • Stock Market News
US STOCKS-Wall Street bounces back; retail trading focus shifts to silver

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* iShares Silver Trust (NYSE: SLV ) ETF jumps

* Wall Street's fear gauge eases from 3-month high

* Indexes up: Dow 1.1%, S&P 500 1.8%, Nasdaq 2.6%

(Updates to late afternoon)

By Caroline Valetkevitch

Feb 1 (Reuters) - U.S. stocks were up sharply on Monday afternoon following a steep sell-off last week, with mining shares rising as the retail trading frenzy shifted to silver and as investors weighed prospects for further economic stimulus.

The iShares Silver Trust ETF SLV.N , the largest silver-backed ETF, jumped 6.7% as silver broke above $30 an ounce for the first time since 2013 with an army of retail traders storming into the metal after betting billions of dollars on stocks last week. miners Hecla Mining Co HL.N , Coeur Mining Inc CDE.N and Wheaton Precious Metals Corp WPM.N surged.

U.S. President Joe Biden will meet 10 moderate Republican senators on Monday to discuss their proposal to shrink his sweeping $1.9 trillion U.S. COVID-19 relief package, even as Democrats prepare to push legislation through Congress without Republican support. gaining some traction, and I think the market is thinking it's a good starting point," said Quincy Krosby, chief market strategist at Prudential Financial (NYSE: PRU ) in Newark, New Jersey.

Also, "the retail trader focus today seems to be on silver, and it's considered to be a small pocket of the market," she said.

Wall Street's main indexes last week logged their steepest weekly fall since October, as investors digested efficacy data from Johnson & Johnson (NYSE: JNJ )'s COVID-19 vaccine trial results, and a battle between Wall Street hedge funds and retail investors added to volatility.

The CBOE volatility index .VIX eased on Monday from three-month highs that were fueled by a surge in shares of GameStop Corp (NYSE: GME ) GME.N , AMC Entertainment Holdings AMC.N and others that burnt hedge funds that had bet against the companies. GameStop was down about 25%, while AMC was up about 6% on Monday.

The Dow Jones Industrial Average .DJI rose 317.28 points, or 1.06%, to 30,299.9, the S&P 500 .SPX gained 66.71 points, or 1.80%, to 3,780.95 and the Nasdaq Composite .IXIC added 340.60 points, or 2.61%, to 13,411.29.

Focus also will be on more quarterly earnings reports this week.

The latest ISM survey was mixed as U.S. manufacturing activity slowed slightly in January, while a measure of prices paid by factories for raw materials and other inputs jumped to its highest level in nearly 10 years. issues outnumbered declining ones on the NYSE by a 4.15-to-1 ratio; on Nasdaq, a 3.51-to-1 ratio favored advancers.

The S&P 500 posted six new 52-week highs and no new lows; the Nasdaq Composite recorded 93 new highs and 15 new lows.

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