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The S & P 500 advanced Monday, buoyed by gains in industrial and technology companies, as investors waited for a busy week for economic data.
The stocks opened the session at their highest level and gave way shortly thereafter, although the S & P 500 and Nasdaq Composite managed to keep their gains for the day.
With the end of the second quarter earnings season, analysts believe investor attention should shift to economic data, with producer price reports, consumer prices and retail sales to be published in the coming days.
Economic data has been largely optimistic this year, pushing the US dollar higher and helping to offset investors' fears that tense trade talks could trigger a wave of protectionism around the world. Many investors view the mid-term US elections in November as a key date for which the scale of the trade dispute should be clearer.
"I think that after the mid-term elections, the trade issue will be somewhat resolved and we will begin to focus more on the fundamentals," said Mark Phelps, director of global equity investments at AllianceBernstein.
The Dow Jones Industrial Average lost 25 points, or 0.2%, to 25857 on Monday, after recording its largest one-week drop since mid-August. The S & P 500 gained 0.2% and the Nasdaq Composite 0.3%.
Technology stocks advanced after losses in the sector led the Nasdaq to its biggest weekly loss since March.
Nvidia chip maker grew by 1.2% and Advanced Micro Devices by 9.2%.
Industrial stocks gave a boost to major indices, with United Rentals up 5.1% and its largest gain in a year after the company announced that it was buying BlueLine Rental.
Meanwhile,
Nike
rose 2.2% after Wedbush raised its stock price target, reducing accumulated losses after the company unveiled an ad campaign featuring the former quarterback of the San Francisco 49ers, Colin Kaepernick.
In addition, the Stoxx Europe 600 rose 0.5%, recording its biggest gain of the month, investor optimism about the budget that the new Italian government should adopt later in September pushed the Italian MTS to increase .
Italian officials have recently indicated that they will limit spending to comply with European fiscal rules and seek to reduce public sector debt. This helped reassure investors after earlier signs suggested that the new anti-establishment coalition in power would seek to challenge the European Union – questioning the political survival of the eurozone.
In Italy, the FTSE MIB jumped 2.3%, while Italian bonds also rallied, dropping the yield on public debt to 10 years.
In Asia, Hong Kong's Hang Seng, Shanghai Composite and Taiwan's Taiex fell by more than 1% as investors worried again about trade tensions between the United States and China.
Shares of companies supplying parts and assembling products for Apple are among the biggest drops of the day, after President Trump put pressure on the tech giant to transfer production to the United States.
Hon Hai Precision Industry iPhone assembler, known as Foxconn, dropped 3.4% to a two-year low, while in US trade, Apple lost 1.3 %.
Write to Jon Sindreu at [email protected] and Akane Otani at [email protected]
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