Markets mostly ended higher on Monday, with the S&P 500 and Nasdaq snapping their four-day losing streak, as tech stocks attempted to rebound. The rally was led by semiconductor stocks that tried to pare losses from last week. However, Apple’s shares took a hit, weighing on all three major indexes. The Dow ended in the red.
The Dow Jones Industrial Average (DJI) fell 0.2%, to close at 25,857.07. The S&P 500 advanced 0.2% to close at 2,877.13. The Nasdaq Composite Index closed at 7,924.16, rising 0.3%. A total of 5.6 billion shares were traded on Monday, lower than the last 20-session average of 6.1 billion shares. Advancers outnumbered decliners on the NYSE by a 1.61-to-1 ratio. On Nasdaq, a 1.11-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow shed 59.47 points, with shares of Apple, Inc. (AAPL - Free Report) taking a hit. Shares of Apple declined 1.3%. The Travelers Companies, Inc. (TRV - Free Report) was one of the major losers with the company’s shares declining 1.9%. However, the Dow Jones Transportation Average (^DJT) gained 1.8% to close at a record high of 11,554.08.
The S&P 500 gained 5.45 points, ending its four-day losing streak. The rally was led by utilities and industrials. The Utilities Select Sector SPDR (XLU) and Industrial Select Sector SPDR (XLI) gained 0.5% each. The Technology Select Sector SPDR ETF (XLK) gained 0.3%. Of the 11 major S&P 500 sectors, eight ended in the positive territory.
The tech heavy Nasdaq gained 21.62 points, led by a rally in tech stocks. Shares of Facebook, Inc. (FB - Free Report) gained 0.7%, while Microsoft Corporation (MSFT - Free Report) increased 1.1%. Microsoft has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tech stocks Help Markets
Tech stocks have been suffering over the past week with shares of all tech giants taking a hit. Last week, tech stocks declined more than 3% as investors panicked that there could be stricter regulatory measures for Internet and social media companies. Also, semiconductor stocks plummeted last week after Morgan Stanley (MS - Free Report) warned about weakness in the memory market.
This further rattled the markets, leading to huge selloffs in tech stocks. However, on Monday, tech stocks tried to stage a comeback led by a rally in semiconductor stocks. However, Apple’s shares took a hit, weighing on all three major indexes. On Friday, Apple had indicated that some of its products could be affected because of tariffs. On Saturday, President Donald Trump tweeted that Apple should shift its production to the United States to avoid proposed tariffs. This led to Apple’s shares declined further on Monday.
Trade War Fears Continue
On Friday, Trump had said that the United States is ready to move ahead with tariffs on an additional $267 billion worth of Chinese goods. This once again ignited fears of trade war between the United States and China. Investors continued to feel jittery on Monday that affected the markets.
Meanwhile, investors await the release of the Consumer Price Index data this week. Also, the Republicans have plans of unveiling tax cuts this week, which investors would be closely watching.
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