Tech sector shines as market goes higher

Technology companies are helping drive stocks higher on Wall Street after a choppy start Monday as investors weigh the risks that rising coronavirus cases could pose to hopes for an economic recovery.

The S&P 500 was up 0.6 percent in afternoon trading after initially sliding 0.6 percent following weakness in overseas markets as the global tally of infections approaches 9 million. The price of gold rose, a signs of caution in the market. Bond yields were mixed. The price of U.S. crude oil rose,

track to settle above $40 a barrel for the first time since early March, before the economy all but shut down completely because of the outbreak.

The Dow Jones Industrial Average rose 122 points, or 0.5 percent, to 25,995 after earlier sliding 203 points. The Nasdaq composite was up 0.9 percent. Technology companies accounted for most of the gains, outweighing losses in health care, financial and other sectors. Airlines and cruise line operators were among the biggest decliners.

American Airlines fell 5.6 percent on news that the company plans to raise $3.5 billion that includes $1.5 billion from selling stock and debt that can be converted to stock. Airlines have been scrambling to raise cash to survive a sharp drop in travel. Alaska Airlines said Monday that June revenue will be down about 80 percent from a year ago, though that’s better than April’s 87 percent decline and May’s 83 percent drop. Alaska’s shares recovered from an early slide and were up 0.7 percent.

Cruise line operators were among the biggest decliners in the S&P 500. Norwegian Cruise Line, Royal Caribbean and Carnion val were down between 4 percent and 7 percent. The stocks have been among the hardest hit as the cruise industry remains shut down because of the virus.

The S&P 500 is coming off its fourth weekly gain in the past five weeks. Encouraging economic data, including retail sales and hiring, have helped stoke optimism among investors that the reopening of businesses in the U.S. and other countries will pull the economy out of its recession relatively quickly.

But a rise in new virus cases is clouding the prospects for an economic recovery. On Friday, stocks sold off after Apple said it would be temporarily closing 11 stores again in four states, citing a surge in new virus cases.

“The path of the virus remains uncertain, but the market has certainly gone up and recovered to some degree as though it’s going to go OK,” said Tom Martin, senior portfolio manager with Globalt Investments.

Many professional investors have been warning that the S&P 500’s big rally of nearly 40 percent since late March has been overdone and that volatility is likely the market’s only certainty in upcoming months.