Major 4 indexes set new records

NEW YORK — U.S. stocks set more records Monday as shares of health care companies and banks continued to surge while investors grew more optimistic about the recovery in manufacturers.

The Standard & Poor’s 500 index rose 9.76 points, or 0.4 percent, to 2,529.12. The Dow Jones industrial average advanced 152.51 points, or 0.7 percent, to 22,557.60. The Nasdaq composite gained 20.76 points, or 0.3 percent, to 6,516.72. The Russell 2000 index of smaller-company stocks jumped 18.61 points, or 1.2 percent, to 1,509.47. All four indexes finished at record highs.

Stock indexes rose after the Institute for Supply Management said U.S. factory activity hit a 13-year high in August as hurricanes disrupted supplies but drove up demand for manufactured goods. Investors snapped up shares of companies that are linked to more rapid economic growth, like banks and health care and industrial companies, as well as smaller, U.S.-focused companies. High-dividend stocks, which are traditionally considered safer and more cautious investments, lagged the rest of the market. Energy companies missed out on the gains as investors worried that oil supplies are rising.

In the last few weeks, stocks have returned to the pattern they followed from the November presidential election to President Donald Trump’s inauguration in January: growth-oriented stocks have risen while the dollar has gotten stronger and bond yields have increased.

“We’ve seen this acceleration in global earnings growth over the last couple of months,” said Mark Hackett, chief of investment research at Nationwide Investment Management. “We’ve seen the rest of the world kind of pick up where the U.S. has been going.”

Hackett added that investors in the U.S. seem to have gotten more optimistic that a tax cut package and an infrastructure spending bill could pass a bitterly divided Congress. That could strengthen the U.S. economy and corporate earnings.

Leaders in health care included genetic testing equipment company Illumina, which saw its shares rise $3.03, or 1.5 percent, to $202.23. Botox maker Allergan climbed $6.03, or 2.9 percent, to $210.98. Among industrial stocks, General Electric jumped 39 cents, or 1.6 percent, to $24.57.

Oil prices dropped after oilfield services company Baker Hughes said Friday that more drilling rigs went into operation last week after two weeks of declines, and Reuters reported that output of OPEC nations grew in September. Both of those reports suggest that oil supplies are rising.

Benchmark U.S. crude fell $1.09, or 2.1 percent, to $50.58 a barrel in New York. Brent crude, the standard for international oil prices, shed 67 cents, or 1.2 percent, to $56.12 a barrel in London.

Nordstrom slumped following a report that talks to sell the company to a group of investors including the Nordstrom family could fall apart.

Nordstrom stock fell $2.97, or 6.3 percent, to $44.18. Other department stores also fell on concerns about the value of the companies and their ability to raise money.

Bond prices were little changed. The yield on the 10-year Treasury note held steady at 2.34 percent.

Gold lost $9 to $1,275.80 an ounce. Silver fell 2 cents to $16.65 an ounce. Copper remained at $2.96 a pound.