News: S&P 500 and Dow end session at record highs.
(Reuters) – The S&P 500 and Dow Jones Industrial Average closed at record highs on Monday as investors watched an economic rebound from the coronavirus and waited for clues from the Federal Reserve this week amid rising borrowing costs.
In a concrete sign that the worst damage from the coronavirus pandemic to the aviation industry may be over, Delta Air Lines, Southwest Airlines and JetBlue Airways said leisure bookings had increased.
Profits in the major indices accelerated towards the end of the trading session.
The S&P 1500 Airlines Index rose over 4% to an annual high, while other travel-related stocks, including Carnival Corp, Wynn Resorts, and MGM Resorts, rose between 2% and 5%.
Nine of the eleven major S&P industry indices, led by utilities and real estate, each rose by more than 1%.
It was the Dow’s sixth record high in a spike sparked by mass vaccinations and the approval of Congress on a $ 1.9 trillion auxiliary bill. The expectation of a rebound accelerated demand for stocks such as banks, energy and materials companies, which are expected to outperform if the economy recovers.
On Monday, the Russell Growth Index outperformed the Russell Value Index in a modest reversal of the recent trend of investors away from technology and other high-growth stocks.
“Given the positive news about the vaccine and the incentive, we expect stocks that stay at home will continue to rotate appropriately,” said Greg Bassuk, CEO of AXS Investments. “We are optimistic about financial services and energy emerging from the pandemic.”
The S&P 500 was up nearly 6% in 2021 while the Dow was up nearly 8%.
At the end of Wednesday’s two-day Fed meeting, policymakers are expected to forecast the U.S. economy will grow at the fastest rate in decades in 2021, while reaffirming their cautious stance for the foreseeable future.
Benchmark 10-year government bond yields fell to 1.60%, below their 13-month high of 1.64% on Friday. Wall Street has been rocked in recent weeks by a surge in longer-term US bond yields amid fears of a spike in inflation.
The Dow Jones Industrial Average rose 0.53% to end at 32,953.46 points, while the S&P 500 rose 0.65% to 3,968.94.
The Nasdaq Composite rose 1.05% to 13,459.71. It remains almost 5% lower than it was on February 12th.
The volume on the US exchanges was 12.5 billion shares, compared to the average of 14.5 billion for the entire session over the last 20 trading days.
Tesla rose about 2% after the company named CEO Elon Musk as the “Technoking of Tesla” in a formal regulatory filing.
Shares in Eli Lilly and Co slumped 9.1% after an interim test of the experimental Alzheimer’s drug produced “mixed” results, which analysts said reduced the likelihood of accelerated approval of the drug .
Advancing issues outperformed declining issues on the NYSE by a ratio of 1.78 to 1. On Nasdaq, a ratio of 1.35 to 1 favored the advanced.
The S&P 500 posted 90 new 52-week highs and no new lows. The Nasdaq Composite made 281 new highs and 15 new lows.
Reporting by Noel Randewich in Oakland, California; additional coverage by Shashank Nayar and Medha Singh in Bengaluru; Editing by Aurora Ellis
Original Source © Reuters