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U.S. stocks rose on Monday, with both the Dow and the S&P 500 hitting intraday records as technology shares rebounded from a recent bout of sharp weakness and lifted major indexes.
The gains follow strength across global equities, as European and Asian benchmarks moved higher.
The Dow Jones Industrial Average DJIA, +0.53% rose 102 points, or 0.5%, to 21,487, hitting an all-time high of 21,506.4 in morning activity. With the move, the blue-chip average is up 8.7% so far this year.
The S&P 500 SPX, +0.69% gained 17 points to 2,450, a gain of 0.7%. The large-cap index, up 9.4% in the year to date, hit its own intraday record on Monday.
The Nasdaq Composite Index COMP, +1.14% rose 76 points to 6,227, a gain of 1.2% that represented its biggest one-day move since April. The outsize move in the index was largely due to gains in tech shares XLK, +1.21% up 1.3%, as the index is heavily weighted toward the sector.
“Tech got beat up unfavorably over the past week or two, but as the group’s earnings remain strong, we expect buyers are coming in to take advantage of the depressed prices,” said Peter Lewis, a managing partner at Murphy Capital Management. “Tech valuations are probably nearly the high end of the band, but if earnings and merger activity keep going, that could bode well for the sector.”
Investors are likely to keep tech stocks in focus this week, amid concerns the sector could start to drag down the broader market, given the Federal Reserve has indicated it will tighten policy and economic data has failed to inspire. That major indexes are trading near records at a time when data has painted a mixed picture of the economy has some wondering whether the market’s valuations are justified.
“We are deeply concerned about the market’s valuation,” said Phil Davis, chief executive officer at PSW Investments, who said he was viewing the 5,600 on the Nasdaq as a key level, one that is about 2.3% below its Friday closing price. “If we fail to hold 5,600, then you will begin to see panic setting in as fund managers are forced to consider the reality of their overvalued holdings.”
Economic docket: Chicago Fed President Charles Evans is slated to give a speech to the Money Marketeers of New York University at 7 p.m. Eastern.
Stocks to watch: Shares of Boeing Co. BA, +1.33% rose 1.3% after the aircraft maker said more than 10 customers have committed to buying its 737 Max 10 airplanes. It made the announcement at the 2017 Paris Air Show on Monday. Among the orders, General Electric Co.’s GE, -0.52% plane-leasing unit GECAS, signed an order for 20 of the planes.
Alphabet Inc.’s GOOGL, +1.57% Google Inc. announced a four-step plan to fight terror, among them using technology to spot extremist and terror-related videos, in a blog post Sunday. The stock rose 2%, participating in the broader tech rally.
Europe inspires: While Asian stocks kicked the week off higher, even more robust gains were seen for European stocks on Monday. The French CAC 40 index PX1, +0.90% rose 0.9% after French President Emmanuel Macron’s pro-Europe Union party and its centrist ally saw a decisive victory in parliamentary elections. The Stoxx Europe 600 SXXP, +0.87% was up about 0.6%.
The FTSE 100 index UKX, +0.81% added 0.5%. U.K. officials will be meeting with their Brussels counterparts on Monday to start talks over Britain leaving the European Union. Meanwhile, in what police are calling a terrorist attack, a van rammed into a crowd near a mosque in North London, leaving one person dead and several injured.
Other markets: Oil prices CLN7, -0.49% were higher, while the dollar DXY, +0.32% held steady. The pound GBPUSD, -0.2583% firmed up ahead of those Brexit talks. Gold prices GCQ7, -0.57% slipped $4 to $1,252.40 an ounce.