U.S. stocks closed higher Monday as gains by some Big Tech companies offset a drop in oil-and-gas stocks. The S&P 500 rose 0.3%. The Dow Jones Industrial Average rose 0.6%, while the Nasdaq composite finished 0.3% higher.
It’s now within 0.4% of its all-time high set in July. Several Big Tech stocks, including Apple and Meta Platforms, helped lead the way. Five major technology companies are set to report their latest profits this week.
These stocks have been at the forefront of Wall Street for years and their movements can significantly impact the S&P 500. After a summertime decline due to concerns about high stock prices compared to profits, companies like Alphabet, Meta Platforms, Microsoft, Apple, and Amazon are under pressure to deliver strong growth. Monday’s gains for Big Tech helped offset drops in oil-and-gas industry stocks, hurt by the sinking price of oil.
Exxon Mobil fell 0.5% and ConocoPhillips fell 1.2%. A barrel of benchmark U.S. crude fell 6.1%, and Brent crude also slid 6.1%. Financial markets are also dealing with volatility surrounding the upcoming U.S. presidential election.
Markets have historically been shaky heading into an election but tend to stabilize afterward.
Big Tech gains offset oil decline
Treasury yields were ticking higher.
The yield on the 10-year Treasury rose to 4.28% from 4.24% late Friday. Yields have climbed as reports have shown strength in the U.S. economy. This bolsters hopes the economy can continue to grow without a severe downturn.
However, it also forces traders to reconsider how deeply the Federal Reserve will cut interest rates. With diminishing bets on significant Fed rate cuts, the U.S. jobs report scheduled for Friday could be a critical event, potentially outweighing Big Tech profit reports. Investors are looking for solid hiring data to support the idea of a stable economy.
Delta Air Lines rose 2.3% after a settlement was reached over a cybersecurity issue that led to thousands of canceled flights in July. The S&P 500 rose 15.40 points to 5,823.52. The Dow added 273.17 points to close at 42,387.57.
The Nasdaq rose 48.58 points to 18,567.19. In stock markets abroad, Japan’s Nikkei 225 rose 1.8%. Stock indexes closed mostly higher across much of Asia and Europe.
