KEEPING SCORE: The S&P 500 jumped 23 points, or 0.9 percent, to 2,464 as of 3 p.m. Eastern time. The Dow Jones industrial average gained 125 points, or 0.6 percent, to 21,983. The Nasdaq composite added 77 points, or 1.2 percent, to 6,333. The Russell 2000 index of smaller companies climbed 18 points, or 1.3 percent, to 1,392.
Last week rising tensions between the U.S. and North Korea startled investors out of the complacency that has dominated the stock market for most of this year. That eased Monday after officials said fighting is not imminent. The top U.S. military officer said the country wants to resolve the standoff peacefully. Thursday was the worst day for stocks since mid-May, while Monday is shaping up to be the best day since late April.
LEADERS: Technology stocks outpaced the rest of the market following a strong report on the state of Japan’s economy. Apple added $2.16, or 1.4 percent, to $159.64 and Microsoft picked up $1.09, or 1.5 percent, to $73.59. Western Digital advanced $2.69, or 3.4 percent, to $82.59.
THE QUOTE: “What the market really reacted negatively to on Thursday was Trump’s somewhat incendiary comments about ‘fire and fury,‘” said Dave Lafferty, chief market strategist of Natixis Global Asset Management. “The administration sort of walked back Trump’s comments over the weekend.”
But while stocks climbed, investors weren’t ready to loosen their grip on some traditionally safe investment. The price of gold didn’t move much and bond prices slipped only a small amount.
NEW BUYER NETS NEFF: Equipment rental company Neff said it received a buyout offer worth $25 per share, or $596 million. It did not say who made the offer, but Neff said its board has decided the new offer is superior to a bid from H&E Equipment Services that the company accepted last month. H&E Equipment has the right to match the new offer. Neff climbed $4.10, or 18.8 percent, to $25.95. H&E’s offer valued Neff at $21.07 a share.
H&E Equipment lost 62 cents, or 2.9 percent, to $20.97.
FRIENDLY NABORS: Drilling technology developer Tesco said it will be acquired by drilling contractor Nabors Industries in an all-stock deal. The companies said Tesco is being valued at $4.62 a share. Tesco added 52 cents, or 13.5 percent, to $4.43. Nabors lost 12 cents, or 1.8 percent, to $6.68.
STICKER SHOCK? Fiat Chrysler climbed after Automotive News reported that a Chinese car maker offered to buy the company. It did not identify that company and said Fiat Chrysler rejected the offer because it wasn’t high enough, but investors hoped another bid would come. Fiat Chrysler stock gained $1.05, or 9 percent, to $12.66.
BONDS: Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.22 percent from 2.19 percent late Friday. That helped banks, as higher bond yields mean higher interest rates and greater profits on mortgages and other loans.
Bank of America climbed 55 cents, or 2.3 percent, to $24.42 and JPMorgan Chase gained $1.17, or 1.3 percent, to $92.59.
RHIMES AND REASON: Shonda Rhimes, the creator of popular television series such as “Scandal” and “Grey’s Anatomy,” will leave ABC and make shows for Netflix under a new contract. Financial terms were not disclosed. Netflix, which already spends billions of dollars a year on programming, has recently started shelling out more money for new shows. Last week it bought comic book publisher Millarworld, its first-ever acquisition.
Netflix lost $1.07 to $170.33.
TARGET’S GRAND PLAN: Retailer Target is buying a delivery logistics company to help it offer same-day delivery service to in-store shoppers. The company did not say how much it will pay for Grand Junction, a firm that connects retailers with about 700 delivery companies around the country that pick up items from distribution centers and take them to customers. It is already testing same-day delivery at a New York store.
Target stock climbed 72 cents, or 1.3 percent, to $55.75.
ENERGY: U.S. crude oil lost $1.23, or 2.5 percent, to $47.59 a barrel in New York. Brent crude, the international standard, shed $1.37, or 2.6 percent, to $50.73 a barrel in London.
Wholesale gasoline lost 4 cents to $1.58 a gallon. Heating oil fell 3 cents to $1.61 a gallon. Natural gas slid 2 cents to $2.96 per 1,000 cubic feet.
METALS: Gold fell $3.60 to $1,290.40 an ounce. Silver added 5 cents to $17.12 an ounce. Copper dipped 1 cent to $2.90 a pound.
CURRENCIES: The dollar rose to 109.59 yen from 109.04 yen. The euro fell to $1.1786 from $1.1824.
OVERSEAS: Germany’s DAX jumped 1.3 percent and the CAC 40 in France gained 1.2 percent. In Britain, the FTSE 100 index added 0.6 percent. Hong Kong’s Hang Seng index jumped 1.4 percent and the South Korean Kospi rose 0.6 percent. Japanese stocks fell sharply as investors played catch-up after an extended holiday weekend. The Nikkei ended 1 percent lower.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay