It was a good day on the Street on Monday, as all the major equity indexes chalked up gains as technology and defense companies saw their shares rise after the United States and Saudi Arabia signed a multi-billion-dollar arms deal.
Shares of General Dynamics, Raytheon, and Lockheed Martin all hit record highs early on but ended off those levels, with gains of between 0.6 percent and 1.6 percent. Boeing gave the Dow Jones Industrial Average its largest improvement, ending up 1.6 percent at $183.67.
The S&P industrials index rose 0.7 percent and the S&P 500 posted a third straight day of gains, further recovering from last week’s selloff that was tied to worries about the outlook for President Trump’s domestic agenda.
Trump visited Saudi Arabia over the weekend and confirmed $110 billion in deals. Riyadh will buy U.S. arms to help it counter Iran, with options running as high as $350 billion over 10 years.
While every sector but energy ended higher on the day, tech shares were the day’s best performers, with Amazon, Microsoft and Apple among the largest drivers in the S&P 500 and the Nasdaq.
Volatility eased as stocks continued their recovery from last week. The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, has given up nearly all its gains from last week. It fell more than a point on Monday to end at 10.93.
A much stronger-than-expected earnings season has also helped investor sentiment. With results in from nearly all of the S&P 500 names, year-over-year first-quarter growth is now estimated at 15.3 percent, Thomson Reuters data showed.
Ford rose 2.1 percent to $11.10 after the automaker named James Hackett as chief executive, responding to investors’ growing unease about its stock price and prospects.
Approximately 5.9 billion shares changed hands on the major domestic equity exchanges, a number that was below the 6.9 billion daily average for the past 20 trading days, according to Thomson Reuters data.