The S&P 500 and Dow industries ended Monday at record highs as investors shifted to the defense sectors and equities rebounded after losses earlier in the session and China posted negative economic data.
Economically sensitive groups such as energy, materials and finance weakened after China fell short of expectations in July as factory production and retail sales growth slowed sharply and new COVID-19 outbreaks and flooding disrupted business operations.
Healthcare gained 1.1 percent as the best performing S&P 500 sector. Utilities and basic consumer goods, often regarded as defense sectors, further increased their gains.
The S&P 500 and Dow Jones finished the fifth session in a row with record highs despite the initial declines in major indexes.
The Dow Jones Industrial Average rose 110.02 points, or 0.31 percent, to 35,625.4 points, the S&P 500 rose 11.71 points, or 0.26 percent, to 4,479.71 points, while the Nasdaq Composite fell 29.14 points, or 0.2 percent, to 14,793.76 points.
A recovery in the US economy, including an excellent second-quarter corporate earnings season as well as harmonious monetary policy, supported the positive sentiment for stocks. The S&P 500 is up 100 percent since its March 2020 low.
Nearly 8.5 billion shares changed hands on US stock exchanges and fell below the daily average of 9.2 billion in the last 20 sessions.
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