U.S. stock indexes advanced on Monday, as investors eyed progress on an infrastructure bill, merger activity and a sign that central-bank stimulus may continue.
What are major indexes doing?
The Dow Jones Industrial Average
rose 195 points, or 0.6%, to 35,131.
S&P 500 index
traded up 23 points, or 0.5%, to 4,418.
The Nasdaq Composite Index
gained 45 points, or 0.3%, to trade at 14,717.
Last week, the major stock market indexes dropped, with the S&P 500 losing 0.4% and Nasdaq Composite dropping 1.1%, after the megacap tech companies reported quarterly results. The Dow fell 0.4% last week. The S&P 500 rose 2.3% in August, for its sixth consecutive monthly gain.
What’s driving the market?
Stocks are off to a fairly hot start to commence trade in August, a seasonally tough time for equities.
Gains to start the dog days of summer are being supported thus far by investors. who are upbeat that the economic expansion will boost corporate profits. However, the spread of the Delta variant of COVID-19 has caused some caution on Wall Street, with the 10-year benchmark Treasury
at multimonth lows around 1.20%.
Investors also are keeping a close eye on China’s efforts to rein in tech firms domiciled in the People’s Republic.
“The stars have aligned for stock markets, with a stellar earnings season being complemented by record-low real yields and hopes that Congress will deliver more fiscal juice soon,” said Marios Hadjikyriacos, senior investment analyst at XM. U.S. senators over the weekend concluded the text of a $1 trillion infrastructure bill.
In a speech delivered Friday night, Fed Gov. Lael Brainard suggested that the central bank won’t announce a tapering of its bond purchase program at the Jackson Hole gathering at the end of the month. “I expect to be more confident in assessing the rate of progress once we have data in hand for September, when consumption, school, and work patterns should be settling into a post pandemic normal,” she said.
Looking ahead, the September jobs data won’t come until Oct. 8, according to the Labor Department’s calendar of releases, and the next Federal Open Market Committee meeting after that will end Nov. 3.
Meanwhile, an Institute for Supply Management manufacturing report is due at 10 a.m. Eastern.
Which companies are in focus?
announced Monday an agreement to buy Oil Price Information Service (OPIS) for $1.15 billion in cash, from S&P Global Inc.
and IHS Markit Ltd.
News Corp is the parent of Dow Jones and MarketWatch, the publisher of this report. Shares of News Corp. were up by about 1%, those for S&P Global were up 0.8% and IHS Markit shares were up by about 1%.
How are other markets doing?
The yield on the 10-year Treasury note was down 2.2 basis points at 1.212%. Yields and debt prices move in opposite directions.
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was off 0.2%.