Stocks advanced on Monday for a second straight session of gains led by energy and technology stocks building on gains at the end of last week.
The Dow blue-chip index soared over 400 points at close or +1.70%, to 24,601.27 in a broad-based rally. The S&P 500 added 36 points or +1.39% to 2,656.00 with Under Armour up +5.78% and energy companies such as Marathon Oil up +4.90% and Hess up +4.80% adding lift. Comentators also attribute the S&P 500's bounce from its fall below its 200-day moving average last Friday - a gauge for chart watchers would have added momentum
Stock prices had been battered over the last two weeks with the three major indexes dipping in to correction territory spurred by the prospect of rising inflation. The Dow has now risen over the last five days +1.46% while the S&P 500 has eked into positive territory up +0.27%. A sense of optimism pervades this latest rally, fundamentals being what they are but experts are reluctant to call an end to the pull back. Inflationary pressures and enusing interest rate hikes worries may have receded for investors for now. Although consumer price data due on Wednesday may yet reignite worries.
Earlier on Monday, US 10-year Treasury yields touched a four-year high before falling back. The dollar fell supporting raw materials. Oil regained ground after a six-day losing streak and gold rose +0.65% to $1,324.30 it's biggest advance in two weeks.
- Dow 24,601.27 +1.70%
- S&P 500 2,656.00 +1.39%
- NASDAQ 6987.96 +1.56%
- Russell 2000 1,491.02 +0.89%
- NYSE Composite 12,560.12 +1.24%
- Gold 1,324.30 +0.65%
- Oil WTI $59.33 +0.22%
- 10-Year Treasury 2.857 -0.03bp
Trump unveils infrastruture plan
Preident Donald Trump delivered his $4.4trn budget plan to Congress on Monday with Congress expected to do what it usually does with presidential budget proposals and ignore it. However, the budget for fiscal 2019 is important as a the President's "messaging document" according to Mike Mulvaney, director of the Office of Management and Budget.
However, materials sector rose after the president's plan would realloacte $200bn in federal seed money over 10 years to stimulate states, local government and the private sector to finance public works. At the White House to talk up the infrastructure proposals with state and local representatives, Trump said:
“We’re really way behind schedule, we’re way behind other countries. We always led the way for many, many years. Then a number of decades ago it slowed down, and over the last eight years and 15 years, to be honest, it’s come to a halt.”