Dow roars back after brutal week

The Dow rebounded smartly on Monday from last week's beating, which was the worst all year.

Blue chips rallied 586 points in their first up day in six sessions. The S&P 500 gained 58 points. The Nasdaq jumped 111 points.

Investors are finding relief in lower bond yields and taking comfort from the Federal Reserve's new stance towards inflation and interest rates.

Phil Toews is head of Toews Asset Management.

"You have to remember that interest rates are only at 1.4 percent - 1.5 percent on the 10 year prior to what we saw in the last 12 months or 16 months, we were never anywhere near those levels. So the economy and stocks can do well if interest rates rise from such low levels. I don't think that's as big of a fear. And I think the fact that the Fed is on top of inflation or appears to be on top of inflation is what's allowing this market to get legs again."

Energy stocks were a big winner of the day after a positive call on oil. Bank of America predicted global oil prices will likely average $68 a barrel this year but could surge to $100 next year as demand continues to bounce back. Shares of Exxon Mobil jumped nearly 4 percent.

Smith and Wesson shares rallied to an all-time high. Investors continue to buy the gunmaker after it posted strong quarterly results last week. The stock soared 18 percent on Monday.

It was a different story for bitcoin. The cryptocurrency slumped after China tightened its grip on digital currencies. Authorities ordered cryptocurrency mining projects closed in the major mining center of Sichuan province. Bitcoin tumbled below $33,000....

And that took crypto-stocks down for the ride. Coinbase, the largest publicly traded bitcoin exchange, shed 3 percent.