By Yasin Ebrahim

Investing.com — The S&P 500 rallied Monday, buoyed by a JPMorgan-led jump in banks and rally in tech as the dip-buying seen late Friday continued into the start of the week.  

The index rose 1.9% while the gain 1.6% or 652 points was recorded. It also climbed 1.56%.

JPMorgan Chase (NYSE) saw more than 7% increase in its annual performance guidance. JPMorgan Chase forecasted net interest income of $56billion in 2022. That’s an increase from the $50b a prior forecast.

Recent pressure on banking stocks has been caused by fears of recession and expectations for higher rates. The Federal Reserve will be tightening its monetary policy faster.

But JPMorgan, while acknowledging that the risk of a “future adverse outcome” has increased, downplayed the risk of recession, pointing to a U.S. economy that  “remains fundamentally strong.”

Many banks rallied after JPMorgan’s positive outlook. Citigroup (NYSE:), Wells Fargo & Company (NYSE:) and Bank of America (NYSE:).

Energy stocks rose by more than 2 percent as oil prices fluctuated between gains or losses, despite rising expectations of a rise in energy demand, as Shanghai opens its doors for business after two months under Covid-19 lockdown.  

Schlumberger NV (NYSE) (NASDAQ:), APA(NASDAQ:), and Coterra Energy (NYSE 🙂 all rose sharply, the former by over 6%.  

Technology led the recent market crash. It continued its momentum on Friday with Alphabet (NASDAQ) and Microsoft (NASDAQ) continuing to gain.

Airbnb came in marginally lower, as it cited a CNBC report (citing unnamed source) that said the company will close its domestic China business by the summer.

VMware (NYSE:), which gained more than 20% due to reports that the company was in discussions with Broadcom for a deal.

The agreement could attract regulator scrutiny even if there’s no overlap in business between the companies.

“Our one concern is the potential that regulators block the deal. Although we do not see any business overlap which has traditionally led to regulator scrutiny, we believe such overlap did not exist in AVGO’s QCOM purchase nor QCOM’s unsuccessful attempts to buy NXP. [Semiconductors],” Wedbush said.