U.S. Stocks Close On Bright Note Despite Coming Off Day’s Highs

U.S. stocks climbed higher on Monday with those from the technology sector turning in a fine performance, as traders indulged in some bargain hunting after recent losses. Easing worries about Middle East tensions helped underpin sentiment.

The major averages all closed on a firm note. The Dow ended with a gain of 253.78 points or 0.67 percent at 38,239.98, more than 200 points off the day’s high of 38,447.16. The S&P 500, which climbed to 5,038.84, settled at 5,010.60, gaining 43.37 points or 0.87 percent, while the Nasdaq ended higher by 169.30 points or 1.11 percent at 15,451.31, off the day’s high of 15,539.00.

The market gained amid slightly easing fears of a wider Middle East conflict after Iran and Israel completed ‘measured’ counterattacks that were calibrated to avoid any casualties. A bit of bargain hunting is contributing as well to the market’s rise.

Investors awaited a slew of key U.S. economic data this week, including reports on new home sales, durable goods orders and personal income and spending.

The Commerce Department’s personal income and spending report includes readings on inflation said to be preferred by the Federal Reserve.

Earnings season also starts to pick up steam this week, with Tesla (NASDAQ:TSLA), Boeing (NYSE:BA), IBM (NYSE:IBM), Caterpillar (NYSE:CAT), Honeywell (NASDAQ:HON), Alphabet (NASDAQ:GOOGL), Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) among the companies due to report their quarterly results.

Goldman Sachs and JPMorgan Chase climbed 3.3% percent and about 2%, respectively. Procter & Gamble gained 1.5 percent.

Amazon, McDonald, Chevron, Amgen and Walmart gained 1 to 1.5 percent.

Salesforce.com shares gained more than 1 percent after the company backed away from its talks to acquire data-management software firm Informatica.

Ford Motor rallied more than 6 percent. United Airlines Holdings gained about 5 percent. Nvidia climbed 4.35 percent. Citigroup, Delta Airlines, Seagate Technology, Moderna and American Airlines also ended sharply higher.

Verizon ended 4.7 percent down. The company, which announced weak profit and slightly higher revenues in its first quarter, maintained its fiscal 2024 earnings outlook. For 2024, Verizon continues to expect adjusted earnings per share of $4.50 to $4.70.

Tesla drifted down 3.4 percent, on concerns over gross margins after the company lowered prices in several markets.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.0 percent, while Hong Kong’s Hang Seng Index surged by 1.8 percent.

The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index shot up by 1.62 percent, the German DAX Index climbed 0.7 percent and the French CAC 40 Index ended up by 0.22 percent.

In commodities trading, crude oil futures ended down $0.29 at $82.35 a barrel. Gold futures dropped $66.20 or about 2.76 percent, to $2,332.20 an ounce.

On the currency front, the U.S. dollar was up at 154.84 yen versus the 154.64 yen it fetched at the close of New Yourk trading on Friday. Against the euro, the dollar was at 1.0655, compared to last Friday’s $1.0656.

SOURCE: RTTNEWS

Microsoft (NASDAQ:MSFT)
Historical Stock Chart
From Apr 2024 to May 2024