Wall Street ends day at all-time highs led by financials and energy
After starting the day flat, major equity indexes in the U.S. gained traction and recorded modest gains to close the day at fresh record highs.
Rising Treasury-bond yields on Monday boosted the banks' shares, allowing JP Morgan and Bank of America retracing last week's sharp losses and pushing the S&P Financials Index (SPSY) 0.65% higher. At the end of the session, the 10-year T-bond yield was up 1% at 2.303%. Moreover, fueled by the positive macroeconomic data from China and concerns over a supply disruption in Iraq, crude oil prices rose sharply on Monday with the barrel of West Texas Intermediate settling at 0.8% higher at $51.90. The S&P Energy Index (SPNY) added 0.22% on Monday.
On the other hand, the healthcare sector continued to suffer from the executive order that Donald Trump signed to weaken the Obamacare through smaller subsidies to insurers. The SPXHC dropped 0.4% on the day.
Other than those three sectors, trading action remained relatively subdued as investors remained on the sidelines waiting for next third quarter earnings results. "There aren't many earnings out there so people are kind of pausing and waiting to see what happens in the next few weeks," Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company, told Reuters.
The Dow Jones Industrial Average added 81.42 points, or 0.36%, to 22,953.14, the S&P 500 rose 4.33 points, or 0.17%, to 2,557.50 and the Nasdaq Composite gained 17.92 points, or 0.27%, to 6,623.72.
Headlines from the NA session:
- Market wrap: dollar slightly higher with a lack of catalysts - Westpac
- John Taylor "impresses" Donald Trump for Fed chairman - BBG
- North Korea rejects diplomacy with US for now - CNN
- Fed communications in the spotlight - UOB
- US Pres. Trump: Total termination of Iran nuclear deal is a very real possibility
- US: More (positive) surprises in store? - ING
- NY Fed: Business activity grew at a robust pace in New York State