U.S. stocks closed higher on Monday, with the S&P 500 and Dow recording fresh all-time closing highs, led by a tech rally, as investors kept aside concerns about the Justice Department launching a criminal investigation into Federal Reserve Chairman Jerome Powell. All three major indexes ended in positive territory.
The Dow Jones Industrial Average (DJI) climbed 0.2% or 86.13 points, to end at 49,590.20 points, hitting a fresh all-time intraday and closing high.
The S&P 500 jumped 0.2%, or 10.99 points, to finish at 6,977.27 points, hitting a new all-time intraday and closing high. Consumer staples, materials and industrial stocks were the biggest gainers.
The Consumer Staples Select Sector SPDR (XLP) gained 1.4%. The Technology Select Sector SPDR (XLK) rose 0.4%. The Industrials Select Sector SPDR (XLI) and Materials Utilities Select Sector SPDR (XLB) gained 0.8% and 0.5%, respectively. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.3%, or 62.56 points, to close at 23,733.90 points.
The fear gauge, CBOE Volatility Index (VIX), was up 4.35% to 15.12. Advancers outnumbered decliners on the NYSE by a 1.68-to-1 ratio. On the Nasdaq, a 1.22-1 ratio favored advancing issues. A total of 17.29 billion shares were traded on Monday, higher than the last 20-session average of 16.4 billion.
On the Nasdaq, there were 2,613 new 52-week highs and 2,144 new lows. On the NYSE, there were 725 new 52-week highs and 48 new lows.
Stocks opened lower on Monday following news surrounding Federal Reserve Chairman Jerome Powell. The Department of Justice warned of indicting Powell, reportedly for comments he made to Congress regarding a building renovation, which heightened investors’ concerns over the independence of the central bank.
Powell said that the DOJ’s action was nothing but a “pretest” in its attempt to exert more control over the interest-rate policy, which President Donald Trump has time and again pushed to be reduced sharply.
The concerns saw Dow shed as much as 500 points. However, investors kept aside those concerns and the indexes rebounded later in the session, helped by a jump in Walmart, Inc. (WMT) and other tech stocks.
Walmart moved its stock listing from the NYSE last month and is set to join the Nasdaq-100 from Jan. 20. Shares of Walmart jumped 3% on Monday, boosting both the S&P 500 and Nasdaq as the Consumer Staples Select Sector SPDR (XLP) gained 1.4%. Walmart currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
