That was a stark reversal from last week, when the Fed's hawkish signals on monetary policy sparked a round of profit taking that wiped out value stocks' lead over growth this month and triggered the worst weekly performance for the Dow and the S&P 500 in months.
"The overall theme here is the market still does not know whether it wants easy money or tight money and it's in a tug of war," said Randy Frederick, vice president of trading and derivatives at Charles Schwab.hitting an intra-day high of over 4% and leading the way.The S&P 500 has traded in a tight range this month as investors juggled fears of an overheating economy with optimism about a strong economic rebound.
Focus this week will be on U.S. factory activity surveys and home sales data, while Fed Chair Jerome Powell testifies before Congress on Tuesday.