U.S. Stocks Rose on Monday as Appetite for Risk Returns
U.S. stocks rose on May 24 and the broad rally helped to boost the S&P 500. The benchmark index gained 1%, led by solid gains in technology and communication companies such as Microsoft, Twitter, and Facebook. A variety of companies that depend on direct consumer spending also made solid gains. Sectors that are regarded as safer investments, like utilities, lagged the broader market.
The rally marked a reversal from the market’s recent trajectory. The S&P 500 followed up an all-time high close it reached on May 7 with two straight weekly declines. Investors are looking for potential signs of inflation as the economic recovery continues in the waning days of the U.S. coronavirus pandemic.
Stocks and earnings season
The S&P 500 index added 41.19 points to 4,197.05. The index is on course for a 0.4% monthly gain. The Dow Jones Industrial Average gained 186.14 points, or 0.5% to 34,393.98 on Monday. The tech-heavy Nasdaq Composite added 190.18 points, or 1.4%, and reached 13,661.17.
Smaller company stocks also reached gains. The Russell 2000 index gained 12.07 points, or 0.5%, to 2,227.34.
The current earnings report season is near its end, and companies reported robust results for the first quarter. That helped to affirm Wall Street’s view that the economic recovery is firm. It also helped to justify some of the pricey stock values in several sectors, particularly technology. Investors will get results from Dell as well as Salesforce.com this week, among a few others.
Technology stocks accounted for the main share of the upward move in the market on Monday, with semiconductor companies among the big gainers. Nvidia added 4.1% while Micron Technology gained 2.7%. Among communication stocks, social media giant Facebook advanced 2.7% and Twitter jumped 4.8%.
There are only several economic reports this week, including monthly data on new home sales and prices. In several days, investors will get another reading on inflation in the form of the Commerce Department’s personal consumption and expenditures index.
