The major domestic equity indexes moved higher on Monday, due the accelerating interest in the technology and energy sectors, as oil prices rose in combination with an expected interest rate hike later in the week by the Fed.
Technology stocks were back in favor with the largest amount in interest revolving around Apple as investors eyed a continuation of strong fundamentals in the sector.
Traders, waiting for the Fed’s two-day rate setting meeting to begin on Tuesday, see an 85-percent probability for a 25-basis point hike to the Fed funds rate target and a 15-percent chance of a 50-basis point hike, which would be the third rate hike this year, according to CME Group’s Fedwatch tool.
Most of the 11 major S&P sectors ended higher, with the largest push coming from a 0.8 percent gain in information technology index. The S&P energy index rose 0.71 percent as oil prices rose after a North Sea pipeline shut for repairs.
The S&P’s financial index and industrial index were the S&P 500’s only decliners for the day with losses of around 0.2 percent.
Healthcare investors focused on makers of drugs for blood disorders after clinical data presentations at the annual American Society of Hematology four-day meeting in Atlanta.
Shares of Bluebird Bio ended the day up 17.9 percent to close at $201.8, after hitting a record high of $222.03, following news of positive responses in an early stage myeloma study of its experimental gene-modifying immunotherapy drug co-developed with Celgene. Celgene’s ended the day up 1.8 percent.
Interest in the surge in digital currency bitcoin and the Sunday debut of futures trading in the cryptocurrency continued to fuel bets on related stocks. Shares of Marathon Patent rose 42.9 percent while Xunlei climbed 29.4 percent. Riot Blockchain was up about 45.5 percent.
The equity market appeared to shrug off an early morning explosion that officials called an attempted terrorist attack at one of New York’s busiest commuter hubs. The suspect wounded himself and three others.
Approximately 5.85 billion shares changed hands on the major domestic equity exchanges, as compared to the 6.5 billion share average during the past 20 trading sessions.