Following the lackluster performance seen during last Friday’s session, stocks moved mostly higher during trading on Monday. The tech-heavy Nasdaq led the charge, surging to a new record closing high.
The Nasdaq pulled back off its best levels going into the close but still ended the day up 247.17 points or 1.2 percent at 20,173.89.
The S&P 500 (SPI:SP500) also climbed 22.99 points or 0.4 percent to 6,074.08, while the narrower Dow bucked the uptrend and fell 110.58 points or 0.3 percent to 43,717.48.
The Dow closed lower for the eighth consecutive session, falling to its lowest closing level in almost a month.
The surge by the Nasdaq came amid significant strength among semiconductor stocks, with the Philadelphia Semiconductor Index jumping by 2.1 percent.
Broadcom (NASDAQ:AVGO) extended the surge seen last Friday, while Micron (MU) also posted a standout gain after JPMorgan said it expects the chipmaker to report strong fiscal first quarter results after the close of trading on Wednesday.
Networking stocks also saw considerable strength, extending a recent upward trend, driving the NYSE Arca Networking Index up by 2.0 percent to a new record closing high.
Tech stocks benefited from optimism about the outlook for interest rates ahead of the Federal Reserve’s monetary policy decision on Wednesday.
The Fed is widely expected to continue cutting interest rates, with CME Group’s FedWatch Tool currently indicating a 95.4 percent chance the central bank will lower rates by another 25 basis points.
Traders are likely to pay close attention to the Fed’s accompanying statement as well as officials’ latest economic projections, including their forecasts for rates.
Meanwhile, oil stocks moved sharply lower amid a decrease by the price of crude oil, dragging the NYSE Arca Oil Index down by 2.9 percent.
Telecom, oil service and natural gas stocks also saw notable weakness, partly offsetting the strength in the tech sector.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index closed just below the unchanged and China’s Shanghai Composite Index edged down by 0.2 percent, while Hong Kong’s Hang Seng Index slumped by 0.9 percent.
The major European markets also moved to the downside on the day. While the French CAC 40 Index slid by 0.7 percent, the German DAX Index and the U.K.’s FTSE 100 Index both fell by 0.5 percent.
In the bond market, treasuries showed a lack of direction over the course of the session before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 4.397 percent.
Looking Ahead
Trading on Tuesday may be impacted by reaction to reports on retail sales and industrial production, although activity may be somewhat subdued ahead of the Fed announcement on Wednesday.
SOURCE: RTTNEWS