Stocks extend gains for fifth day, led by tech shares

NEW YORK — Stocks shook off an early stumble and closed broadly higher Monday, nudging some of the major U.S. indexes to more alltime highs as the market added to its recent string of gains.

The S&P 500 rose 0.7% after having been down 0.5% in the early going, extending its winning streak to a fifth day. Technology stocks, airlines, cruise operators and other companies that rely on consumer spending helped lift the market. Banks and energy stocks were the only laggards.

Wall Street continues to eye the bond market, where yields pulled back a bit from Friday’s sharp increase. Investors are also focused on the recovery of the U.S. and global economies from the coronavirus pandemic. The $1.9 trillion aid package for the U.S. economy has lifted investors’ confidence in a strong recovery from the pandemic in the second half of the year, but also raised concerns about a potential jump in inflation.

President Joe Biden’s pledge to expand vaccine eligibility to all Americans by May 1 should also translate into faster economic growth.

Rising interest rates continue to be a key concern for investors following the sudden jump over the last month in bond yields. Rates are not yet at a concerning level, and both the markets and economy can easily digest them, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

“The question ultimately becomes how well markets can digest and stay the course on the idea that these increases are temporary,” he said. “As well as coming to terms with the idea that temporary might be three or four quarters.”

The S&P 500 rose 25.60 points to 3,368.94. The Dow Jones Industrial Average gained 174.82 points, or 0.5%, to 32,953.46. Both indexes hit all-time highs, eclipsing records set on Friday.