Megacap tech-adjacent growth stocks provided much of the upside, putting the Nasdaq out front, while the S&P 500 and blue-chip Dow both recorded new closing highs
U.S. stocks closed higher with a boost from technology shares amid light Columbus Day trading on Monday, while crude prices slipped as investors parsed signs of economic softness in China and braced for a slew of corporate earnings.
Megacap tech-adjacent growth stocks provided much of the upside, putting the Nasdaq out front.
The S&P 500 and blue-chip Dow both recorded new closing highs.
Today is obviously kind of an anomaly of a day because of the lack of economic data and the closure of the bond market, according to Peter Tuz, president of Chase Investment Counsel. Momentum is on the upside until something changes.
The smattering of earnings so far have been pretty good, Tuz said. We’ll see what this coming week brings.
Oil prices slipped and the dollar was flat as news from China stoked fears of weakening global demand.
On Saturday, Beijing pledged to “significantly increase” debt in its attempt to breathe life into the world’s second-biggest economy, but disappointed investors with its lack of detail.
This was followed on Monday by a report showing a sharp deceleration in Chinese export growth, which missed expectations by a wide margin, underscoring the need for robust stimulus.
China is having economic difficulties, said Sam Stovall, chief investment strategist of CFRA Research. Oil prices are another indication of lack of confidence that China will be able to pull itself up by its own boot straps, primarily because the stimulus details are so sketchy.
The DJIA gained 203.14 points, or 0.47%, to 43,067.00, the S&P 500 added 45.17 points, or 0.78%, to 5,860.20 and the Nasdaq Composite advanced 159.75 points, or 0.87%, to 18,502.69.
European shares hit a two-week high at the end of a choppy session as investors mostly shrugged off China’s stimulus plans and focused on earnings season and a ECB policy meeting due later this week.
MSCI’s gauge of stocks across the globe gained 4.37 points, or 0.51%, to 857.10.
The STOXX 600 index gained 0.53%, while Europe’s broad FTSEurofirst 300 index added 11.55 points, or 0.56%.
The dollar index advanced 0.18% to 103.23, with the euro down 0.31% at $1.0903. Against the Japanese yen, the dollar firmed 0.42% to 149.76.
Crude prices slipped as OPEC lowered its 2024 and 2025 oil demand growth view, while China’s oil imports declined for the fifth consecutive month.
Gold backed down from a one-week high in opposition to the dollar’s strength.