(CNBC) — U.S. stocks closed sharply higher on Monday amid an unexpected stimulus from China’s central bank as investors kept eyeing corporate earnings.
“We’re looking at a bounce because of options expiration on Friday and China’s stimulus,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “The move this morning is technical, and because it is technical I’m cautious.”
On Sunday, China’s central bank lowered the reserve requirement ratio for all banks by 100 basis points.