S&P 500 closer to record; most stocks up

U.S. stock indexes closed mostly higher Monday, nudging the S&P 500 within striking distance of its all-time high set in February.

The S&P 500 rose 0.3 percent after wavering between small gains and losses in the early going. The benchmark index is now within 1 percent of its last record high.

The gains came on the first trading day since President Donald Trump announced several stopgap moves to aid the economy in response to the collapse of talks on Capitol Hill for a bigger rescue package.

Trump signed executive orders over the weekend to extend an expired benefit for unemployed workers, among other things. The orders were more limited than what investors hoped to see from a full rescue bill for the economy, but hopes remain that the White House and Congress can return to talks and find a compromise.

The S&P 500 gained 9.19 points to close at 3,360.47. The Dow Jones Industrial Average rose 357.96 points, or 1.3 percent, to 27,791.44. The Nasdaq composite lost 42.63 points, or 0.4 percent, closing at 10,968.36.

Most stocks across Wall Street notched gains, and hotels, cruise operators and airlines — among the hardest-hit companies because of the pandemic — were big gainers. Smaller stocks also had a strong showing, pushing the Russell 2000 index up 15.49 points, or 1 percent, to 1,584.67. Losses in technology, health care and communication services stocks, which have been among the biggest gainers this year, kept the market’s gains in check.

“The more economically sensitive stocks are driving the market higher,” said Brent Schutte, chief investment strategist of Northwestern Mutual Wealth Management. “The rest of the market today and over the past few days is doing better.”

But losses for technology stocks weighed on the market. It’s a continuation of their struggles from Friday, when worries rose that worsening U.S.-China relations could mean retaliation against the U.S. tech industry. It’s a relatively rare setback for the industry, which has been one of the year’s biggest winners so far and cruised through much of the pandemic. Critics had already been calling tech stocks overpriced, even after accounting for their huge and resilient profits.

The S&P 500 extended its winning streak to seven days, its longest since the spring of 2019.

The economy has shown some signs of improvement since the spring, but it is still struggling. A jobs report Friday showed a largerthan-expected increase in hiring across the economy during July but also a slowdown in job growth amid worries that a resurgence in coronavirus infections could force the economy to backtrack.

Benchmark U.S. crude oil for September delivery rose 72 cents to settle at $41.94 a barrel. Brent crude oil for October delivery rose 59 cents to $44.99 a barrel.