Markets touched record highs on Monday, as investors’ confidence bounced back owing to strong economic backdrop and easing global trade war fears. The rally was led by tech and consumer discretionary stocks. The Nasdaq closed at a record high for the first time since March 12.
The Dow Jones Industrial Average (DJI) rose 0.7%, to close at 24,813.69. The S&P 500 increased 0.5% to close at 2,746.87. The Nasdaq Composite Index closed at 7,606.46, increasing 0.7%. A total of 6.5 billion shares were traded on Friday, lower than the last 20-session average of 6.6 billion shares. Advancers outnumbered decliners on the NYSE by a 1.83-to-1 ratio. On Nasdaq, a 1.35-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow gained 178.48 points, as tech stocks closed at a record high. The S&P 500 gained 12.25 points. The rally was once again led by tech and consumer discretionary stocks. The Consumer Discret Sel Sect SPDR (XLY) and the Technology Select Sector SPDR Fund (XLK) gained 1.1% and 0.8%, respectively. Seven of the 11 major sectors in the S&P 500 ended in positive territory.
The tech heavy Nasdaq gained 52.13 points. Shares of Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Netflix (NFLX - Free Report) and Adobe (ADBE - Free Report) jumped 0.8%, 0.9%, 0.5% and 0.8%, respectively. Amazon has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tech Stocks Rally; Apple, Microsoft, Netflix, Adobe Hit All-Time High
U.S. stocks continued their rally for the second consecutive session on Monday. The rally was led by tech stocks, as investors shrugged off trade war fears and showed confidence in the strong economic outlook. Apple unveiled several tools that aim at popularizing augmented reality at its Worldwide Developers Conference (WWDC) that impressed investors. This saw the stock hitting an all-time high.
Microsoft too put up an impressive show as its shares rallied on news of the company acquiring GitHub, a software developer platform for $7.5 billion. Microsoft too touched an all-time high. Other tech stocks to hit an all-time high on Monday were Netflix, Adobe and Electronic Arts (EA - Free Report) .
Consumer Discretionary Stocks Surge on Bullish Investors’ Sentiment
Markets bounced back on Friday after government data reflected robust U.S. job additions in May. The bullish economic outlook saw investors shrugging off trade war fears and the positive sentiment continued on Monday.
This led to a rally in consumer discretionary stocks. The SPDR S&P Retail exchange-traded fund (XRT) posted a gain of 2.2%, its highest single-day gain since Apr 4. Shares of Walmart and Target (TGT - Free Report) surged 2.9% and 4.9%, respectively.
However, factory orders fell 0.8% in April, the most in three months, as demand for aircraft and transportation equipment declined.
Stocks That Made Headlines
What's Behind Walmart Shedding 80% Stake in Brazil Business
Walmart Inc. (WMT - Free Report) struck a deal to sell an 80% stake of its underperforming Brazil business to global private equity fund, Advent International. (Read More)
Southwest Trims View on Soft Bookings & Spike in Oil Prices
Southwest Airlines Co. (LUV - Free Report) has revised its guidance for second-quarter 2018 unit revenues and capacity as well as full-year capacity. (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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