The major equity indexes recouped losses on Monday, with the S&P 500 index and the Dow Jones Industrial Average reaching record highs with growth sectors such as technology in favor again as confidence in the economy surged again after upbeat comments from Federal Reserve officials.
Nasdaq’s biotechnology index rose 2.5 percent in its largest one-day gain since February while the S&P’s healthcare index had a record-high close.
Amazon’s announcement that it would buy Whole Foods and an upbeat tone from Federal Reserve speakers seemed to help reassure investors after the Fed’s rate hike last week.
The S&P’s financial sector was also one of the benchmark’s strongest gainers with a 0.98 percent rise after New York Federal Reserve President William Dudley said inflation was a bit low but should rise alongside wages as the labor market continues to improve, allowing the Fed to continue gradually tightening monetary policy.
The Fed commentary last week had surprised investors who expected more caution after some weak U.S. economic data.
The S&P technology sector finished up 1.7 percent after its second straight weekly decline, which was triggered by fears of stretched valuations. Tech stocks have led the S&P 500’s 9.6 percent rally this year.
Apple rose 2.9 percent to $146.34, providing the largest boost to the S&P followed by JPMorgan Chase, which rose 2.2 percent to $88.07. The S&P 500 bank subsector index rose 1.3 percent.
The two largest gainers for the biotechnology index were Biogen and Clovis Oncology. Biogen ended the trading day up 3.5 percent to $260.54, after it was upgraded to “neutral” from “sell” at UBS. Shares of Clovis Oncology gained 46.5 percent to $87.88 after late-stage data on its ovarian cancer drug.
Approximately 6.3 billion shares changed hands on the major domestic equity exchanges, as compared to the 6.8 billion share average for the last 20 sessions.
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