U.S. stocks jumped on Monday with finance and technology shares providing much of the upside muscle, as upbeat quarterly earnings results revived risk appetite and investors grew less fearful about regional bank credit quality. A broad rally sent all three major U.S. stock indexes to a sharply higher close. The small cap Russell 2000 .RUT outperformed its larger counterparts, rising 2.0%.
Apple stock AAPL.O touched a record high, while Meta META.O , Netflix NFLX.O and Alphabet GOOGL.O gained between 1.3% and 3.3%. The Philadelphia Semiconductor Index .SOX breached an all-time high, ending the session up 1.6%.
Third quarter earnings season has shifted into high gear. Notable results this week include Tesla TSLA.O , Netflix NFLX.O , IBM IBM.N , Intel INTC.O , GM GM.N and Ford F.N , along with a spate of other high-profile industrial firms, including aerospace, transports and diversified manufacturers. Upcoming U.S. regional bank results are expected to provide a closer read of the sector on the heels of last week’s selloff, which was driven by fears of systemic credit stress.
With the federal shutdown entering day 20, investors and policymakers have had to feel their way forward amid the resulting data blackout. But on Friday the Labor Department will make an exception by releasing its September consumer price index (CPI), which will provide the data dependent U.S. Federal Reserve with a glimpse at the state of inflation and perhaps an indication regarding the extent to which the US President;s tariffs are affecting price growth. In the ongoing trade skirmish between Washington and Beijing, the President suggested easing tariffs on China if Beijing resumes key agricultural purchases including soybeans. Trump blamed the latest showdown on China’s rare earth export controls.
The Dow Jones Industrial Average .DJI rose 515.97 points, or 1.12%, to 46,706.58, the S&P 500 .SPX gained 71.12 points, or 1.07%, to 6,735.13 and the Nasdaq Composite .IXIC gained 310.57 points, or 1.37%, to 22,990.54. Of the 11 major sectors in the S&P 500, communication services .SPLRCL enjoyed the largest percentage gain, while consumer staples .SPLRCS and utilities .SPLRCU inched lower.
Among other stock moves, Boeing BA.N advanced 1.8% after the planemaker won approval from the U.S. Federal Aviation Administration to raise 737 MAX production to 42 planes per month. WeightWatchers WW.O surged 9.3% following the company’s announcement that it would partner with Amazon for weight-loss drug delivery. Advancing issues outnumbered decliners by a 4.81-to-1 ratio on the NYSE. There were 345 new highs and 47 new lows on the NYSE. On the Nasdaq, 3,599 stocks rose and 1,078 fell as advancing issues outnumbered decliners by a 3.34-to-1 ratio. The S&P 500 posted 23 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 77 new highs and 69 new lows. Volume on U.S. exchanges was 17.50 billion shares, compared with the 20.21 billion average for the full session over the last 20 trading days.
Reporting by Stephen Culp; Additional Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by David Gregorio.
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