U.S. stocks closed mostly higher on Monday following a robust November, with the Nasdaq and S&P 500 closing at record highs, as investors waited for this week’s batch of economic data including the monthly jobs report. However, the Dow closed lower.
The Dow Jones Industrial Average (DJI) slid 0.3% or 128.65 points, to end at 44,782 points.
The S&P 500 climbed 0.2% or 14.77 points, to finish at 6,047.15 points to record a new closing high. Tech and consumer discretionary stocks were the biggest gainers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 0.9%, while the Technology Select Sector SPDR (XLK) gained 1%. However, seven of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq gained 1% or 185.78 points to close at 19,403.95 points and hitting a new record closing high.
The fear-gauge CBOE Volatility Index (VIX) was down 1.26% to 13.34. Decliners outnumbered advancers on the NYSE by a 1.08-to-1 ratio. On the Nasdaq, a 1.13-to-1 ratio favored advancing issues. A total of 13.64 billion shares were traded on Monday, lower than the last 20-session average of 14.74 billion.
Tech stocks rallied on Monday to begin December on a high as the post-election euphoria continued on Wall Street. The rally was led by Tesla, Inc. (TSLA), with the electric carmaker’s shares ending 3.5% higher.
Big tech names like Apple Inc. (AAPL) and Microsoft Corporation (MSFT) also jumped 1% and 1.8%, respectively. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Monday’s moves followed a blockbuster November that saw all three major indexes hitting new all-time closing highs. The Dow and the S&P 500 gained 7.5% and 5.7%, respectively, in November to record their best month of the year.
November also proved impressive for small-cap stocks, with the Russell 2000 gaining more than 10% for the month.
Last month’s rally was fueled by Donald Trump’s win in the U.S. Presidential election. Experts believe Trump’s plans of cutting taxes and deregulation will be positive for the markets. However, additional tariffs could prove to be negative for stocks.
However, the positive sentiment has continued since Trump’s victory, which has been helping stocks. December is traditionally a good month for stocks. On Monday, investors also digested comments from Federal Reserve Governor Christopher Waller who said he was supportive of a quarter percentage point rate cut in December.
