Dow and S&P 500 Clinch New Records as Tech Rebounds

Dow and S&P 500 Clinch New Records as Tech Rebounds

US stock index futures were higher on Monday with investors snapping up beaten down technology and retail stocks.

Crude oil was more than 1 percent lower with prices at $44 per barrel. Biogen climbed 3.5 percent and Morgan Stanley rose 2.8 percent.

Stocks posted broad gains, with the S&P and Dow closing at new record highs and the S&P tech sector (+1.7%) enjoying a strong rebound from back-to-back weekly declines.

Elsewhere, banks also found a bid after New York Fed chief William Dudley was quoted as having said at a roundtable discussion that the United States central bank should continue hiking rates.

The financial sector.SPSY was also one of the benchmark’s strongest gainers with a 0.9 percent rise after New York Federal Reserve President William Dudley, a close ally of Fed Chair Janet Yellen, said US inflation was a bit low but should rise alongside wages as the labor market continues to improve, allowing the USA central bank to continue gradually tightening monetary policy.Yellen’s confidence as her team raised interest rates for the third time in six months last week surprised investors who had expected more caution about the economy following a set of weak US economic data.”That was notable in supporting the financial sector which does well under the prospects of better economic conditions and a steeper yield curve”, said Luschini.

Trading activity was somewhat subdued, however, as a lack of major USA economic data kept some traders on the sidelines.

Technology companies, health care stocks and banks are leading market indexes higher in midday trading on Wall Street.

Significant strength was also visible among semiconductor stocks, as reflected by the 1.9 percent advance by the Philadelphia Semiconductor Index.

Airline stocks also showed a notable move to the upside, driving the NYSE Arca Airline Index up by 1.8 percent.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.17 percent.

The Dow jumped 144.71 (+0.68 percent) to finish at 21,528.99.

Apple rose 1.7 percent in the first few minutes of trading Monday, while Google’s parent company, Alphabet, gained 1.6 percent.

Today, Dow Jones futures are 71 points ahead, the S&P 500 is up 7.25, while the tech heavy Nasdaq is trading 38.5 poinst higher. The Nasdaq composite climbed 60 points, or 1 percent, to 6,211.