Markets closed slightly higher on Monday, the first trading day of the third quarter. The initial decline owing to uncertainty revolving around President Donald Trump’s trade policy was reversed by a rally in tech stocks. This saw all the three indexes ending the day in positive territory after surviving a choppy trading session.
The Dow Jones Industrial Average (DJI) increased 0.2%, to close at 24,307.18. The S&P 500 rose 0.3% to close at 2,726.71. The Nasdaq Composite Index closed at 7,567.69, increasing 0.8%. The Nasdaq registered 52 new highs and 70 new lows. The S&P 500 recorded two new 52-week highs and 11 new lows. Advancers outnumbered decliners on the NYSE by a 1.09-to-1 ratio. On Nasdaq, a 1.55-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow gained 35.77 points, after declining as much as nearly 200 points. Microsoft (MSFT - Free Report) was one of the best performers on the index, gaining 1.4%. Microsoft has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 added 8.34 points, lead by a rally in tech stocks. The Technology Select Sector SPDR (XLK) gained 0.9%. Eight of the 11 major S&P 500 sectors ended in positive territory. The tech heavy Nasdaq gained 57.38 points, with tech stocks gaining the most. Shares of Facebook, Inc. (FB - Free Report) , Netflix, Inc. (NFLX - Free Report) and Amazon.com, Inc. (AMZN - Free Report) increased 1.6%, 1.7% and 0.8%, respectively.
Trade Dispute Escalate, Tech Stocks Help Market
Trade war fears have kept markets volatile for quite some time now. On Sunday, Trump said that he considers global auto tariffs as his biggest weapon to force his trading partners to grant U.S. concessions. This made investors jittery once again, with markets opening lower on Monday. Also, the European Union warned the United States that imposing higher tariffs on imported cars would be met with retaliatory tariffs on $294 billion worth of goods from the United States.
Moreover Commerce Secretary Wilbur Ross on Monday said that Trump won’t change his mind on tariffs even if markets fall sharply on trade war fears. However, trade war fears somewhat eased later in day and tech stocks, which have been driving markets, once again rallied. The rally in tech stocks pared the initial loses, which helped markets close higher on Monday.
Stocks That Made Headlines
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