U.S. stocks ended marginally higher on Monday, the first trading day of June, led by a tech rally following the launch of a new chip for PCs, while investors closely watched developments in negotiations with Iran. All three major indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.1% or 46.42 points, to finish at 51,078.88 points.
The S&P 500 advanced 0.3%, or 19.90 points, to close at 7,599.96 points. Tech and energy stocks were the biggest gainers.
The Information Technology Select Sector SPDR (XLK) gained 2.5%. The Energy Select Sector SPDR (XLE) rose 1.8%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq climbed 0.4%, or 114.19 points, to end at 27,086.81 points.
The fear gauge, CBOE Volatility Index (VIX), was up 4.77% to 16.05. Decliners outnumbered advancers on the NYSE by a 1.04-to-1 ratio. On the Nasdaq, a 1.01-1 ratio favored advancing issues. A total of 21.80 billion shares were traded on Monday, higher than the last 20-session average of 19.71 billion.
On the Nasdaq, there were 122 new highs and 77 new lows. On the S&P 500, there were 29 new 52-week highs and 18 new lows.
Tech Rally Continues, Investors Hope for Iran Peace Deal
Investors started the month on a cautious note, with all three major indexes posting modest gains on Monday. Shares of NVIDIA Corporation (NVDA) jumped 6.2%, driving the tech rally and boosting the broader market after it unveiled a new chip for PCs that claims to take artificial intelligence (AI) to personal computing.
Shares of Dell Technologies Inc. (DELL) also surged 10.7% following NVIDIA’s announcement. Dell Technologies has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oil prices jumped once again on Monday, with energy stocks surging. The West Texas Intermediate crude futures jumped 5.93% to settle at $92.54 a barrel.
Shares of Exxon Mobil Corporation (XOM) rose 2.8%, while Chevron Corporation (CVX) gained 1.9%. The surge in oil prices came after Iran reportedly said that it was halting all indirect peace negotiations with the United States and threatened to shut the Strait of Hormuz completely after Israel’s attack on Lebanon.
President Donald Trump also responded aggressively, saying that he doesn’t care if negotiations with Iran are halted. This came after the United States and Iranian negotiators reached a 60-day agreement last week to extend the ceasefire, helping boost investor confidence and pushing stocks to new highs.
Economic Data
Economic data released on Monday showed that the U.S. manufacturing sector grew for the fifth straight month. The ISM Manufacturing PMI came up with a reading of 54, hitting its highest level in four years.
A separate report from the Commerce Department showed that construction spending rose 0.4% month over month in April, surpassing expectations of a rise of 0.2%.
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