Tech stocks boost market
Wall Street shrugs off lack of a deal for more aid to economy reeling from virus
Stocks marched higher again on Monday, as Wall Street extended its gains from last week’s rally, the market’s best in three months.
The S&P 500 rose 1.6 percent, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.
The market’s latest upward push came as Wall Street appeared to largely shrug off the latest signs that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president’s fellow Republicans called it too expensive.
Investors may be betting that Congress will deliver a more generous aid bill after the election, should Democrats regain the majority in Congress, as some polls suggest.
“The market is expressing some comfort with Democrats taking the White House and the Senate, if it means that there will be more stimulus,” said Willie Delwiche, investment strategist at Baird. “But the reality is
it’s several months away before anything could get passed. It does raise a question in my mind whether or not some of this is too much, too soon in terms of the market anticipating stimulus at this point.”
The S&P 500 rose 57.09 points to 3,534.22. The benchmark index is on a four-day winning streak and is now within 1.4 percent of its all-time high set Sept. 2.
The Dow Jones Industrial Average climbed 250.62 points, or 0.9 percent to 28,837.52. The Nasdaq composite, which is heavily weighted with technology stocks, gained 296.32 points, or 2.6 percent to 11,876.26.
Apple climbed 6.4 percent and alone accounted for a quarter of the S&P 500’s rise. The iphone maker also was the index ’s biggest gainer. Amazon rose 4.8%. Both companies have events coming up this week, with Apple expected to unveil its latest batch of iphones on Tuesday and Amazon holding its Prime Day on Tuesday and Wednesday.
Microsoft closed higher, rising 2.6 percent., Facebook added 4.3 percent.and Google’s parent company gained 3.6 percent.
The Russell 2000 index of small-cap stocks, which tends to move more with expectations for the economy’s strength than Big Tech companies, notched more modest gains. The index picked up 11.51 points, or 0.7 percent., to 1,649.05.
Mondays gains add to last week’s 3.8 percent rally for the S&P 500, which came amid a dizzying 360-degree spin on expectations for Congress and the White House to be able to deliver more aid for the economy.