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NEW YORK, Sept. 13 (Reuters) – The S&P 500 (.SPX) closed higher on Monday, ending a five-day losing streak as investors focused on possible corporate tax hikes and economic data to come.
The Dow Jones Industrial Average (.DJI) also rose, but the Nasdaq Composite Index (.IXIC) ended lower.
Investors favored value (.IVX) over growth (.IGX), with stocks expected to benefit the most from an economic recovery by enjoying the largest percentage gains.
“There probably aren’t many positive surprises to come this month,” said Liz Young, head of investment strategy at SoFi in New York. “We are in another period of volatility where I think the rotation could go back to cyclicals and reopened trading, as the 10-year bond rate slowly rises until the end of the year.”
Market players are focused on the likely adoption of US President Joe Biden’s $ 3.5 trillion budget package, which is expected to include a proposal to raise the corporate tax rate to 26.5% from 21%. Read more
Goldman Sachs analysts are forecasting a 25% corporate tax rate hike and about half the passage of a proposed increase in foreign income tax rates, which they say would reduce S&P 500 profits of 5% in 2022. read more
The Labor Department is due to release its Consumer Price Index data on Tuesday, which could shed light on the current wave of inflation and whether it is as transient as the Fed insists.
“I don’t see inflation dropping below 2% where it was before the pandemic,” Young added. “Even if some of these transient forces weaken, we will still stay at a higher rate than before.”
Other key metrics expected this week include retail sales and consumer sentiment, which could shed light on how the demand boom driven by economic re-engagement has been held back by the highly contagious variant of COVID-19. Delta.
The Dow Jones Industrial Average (.DJI) rose 261.91 points, or 0.76%, to 34,869.63, the S&P 500 (.SPX) gained 10.15 points, or 0.23%, to 4,468.73 and the Nasdaq Composite (.IXIC) lost 9.91 points, or 0.07%, to 15,105.58.
Among the top 11 sectors of the S&P 500, healthcare (.SPXHC) suffered the largest percentage of losses, while energy (.SPNY), buoyed by rising crude prices, was the main winner .
Shares of vaccine makers Moderna (MRNA.O) and Pfizer Inc (PFE.N) fell 6.6% and 2.2%, respectively, after experts said COVID booster shots were not widely needed.
Coinbase Global Inc (COIN.O) has announced plans to raise approximately $ 1.5 billion through a debt offering to fund product development and potential acquisitions. Shares of cryptocurrency exchanges slipped 2.2%. Read more
Salesforce.com Inc (CRM.N) slumped 1.2%, regulatory record from rival Freshworks Inc says business engagement and customer engagement software company aims for nearly $ 9 billion valuation during its debut in the United States. Read more
The advancing issues outnumbered the declining ones on the NYSE by a ratio of 1.60 to 1; on the Nasdaq, a ratio of 1.02 to 1 favored advances.
The S&P 500 posted 12 new 52 week highs and a new low; the Nasdaq Composite recorded 53 new highs and 71 new lows.
The volume on the US stock exchanges was 10.30 billion shares, compared to an average of 9.29 billion over the last 20 trading days.
Reporting by Stephen Culp; Additional reporting by Krystal Hu in New York and Ambar Warrick in Bengaluru; Editing by Richard Chang
Our Standards: The Thomson Reuters Trust Principles.
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