🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Wall Street ends higher with boost from technology stocks

Published 06/22/2020, 06:50 AM
Updated 06/22/2020, 05:23 PM
© Reuters. Traders exit the 11 Wall St. door of the NYSE in New York
DJI
-
AAPL
-
IXIC
-
RCL
-
NCLH
-
AAL
-
SPCE
-

By Sinéad Carew

NEW YORK (Reuters) - Wall Street's three major indexes closed higher on Monday with the biggest gains in technology stocks as investors focused on the potential for more government stimulus measures even as they worried about an increase in coronavirus cases in the United States and other countries.

Nasdaq registered its fourth record closing high this month with the biggest boosts from Microsoft (NASDAQ:MSFT), Apple and Amazon.com (NASDAQ:AMZN).

The World Health Organization reported a record rise in global coronavirus cases on Sunday, driving demand for perceived safe havens including gold and longer-term U.S. Treasuries. [US/][GOL/]

While New York City on Monday celebrated the lifting of many coronavirus restrictions, a dozen states in the U.S. South and Southwest reported record increases in new cases with 10% to 20% of people testing positive in some.

However White House economic adviser Larry Kudlow told CNBC that there was no second wave of the pandemic and that it is unlikely there will be widespread shutdowns across the country.

Investors were also clinging to hopes for more government stimulus after U.S. House of Representatives Democrats on Thursday unveiled a $1.5 trillion infrastructure bill in the same week that reports emerged of preparations by the Trump administration for an infrastructure stimulus plan.

"The good news from last week is dominating the bad news from today, which is the increase in COVID cases," said Nela Richardson, investment strategist at Edward Jones, who cautioned that government infrastructure spending plans have failed to become reality several times in the recent past.

Richardson said rising virus case numbers spurred a rotation out of sectors hit hardest by coronavirus' economic impacts into more resilient sectors such as technology.

U.S. President Donald Trump said on Monday that he supported the idea of giving Americans a second round of financial aid because of the virus.

The Dow Jones Industrial Average rose 153.5 points, or 0.59%, to 26,024.96, the S&P 500 gained 20.12 points, or 0.65%, to 3,117.86 and the Nasdaq Composite added 110.35 points, or 1.11%, to 10,056.48.

Of the S&P's 11 major sectors, technology was leading the pack. However the next biggest gainer was the defensive utilities sector.

The market took a step back on Friday after Apple Inc's move to temporarily shut some U.S. stores again underscored concerns of a delay in the recovery.

But Apple shares (NASDAQ:AAPL) climbed on Monday and trading at record highs as the company announced new products at its annual conference for software developers.

Travel-related stocks were some of the weakest as those companies have been hit hard in the past by lockdowns.

The S&P 1500 airlines index dropped 1.3%, while shares of cruise operators Norwegian Cruise Line (NYSE:NCLH) and Royal Caribbean (NYSE:RCL) Cruises dropped 6%.

U.S.-based meat processor Tyson Inc slipped 2.8% as China's customs authority suspended imports of poultry products from a plant owned by the company that had been hit by the coronavirus.

American Airlines (NASDAQ:AAL) Group Inc fell almost 7% as it planned to secure $3.5 billion in new financing by selling shares and convertible senior notes to boost liquidity.

Virgin Galactic Holdings (NYSE:SPCE) Inc soared just under 16% as it signed up with NASA to develop a program to promote private missions to the International Space Station.

Advancing issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored advancers.

The S&P 500 posted 14 new 52-week highs and no new lows; the Nasdaq Composite recorded 120 new highs and nine new lows.

© Reuters. Traders exit the 11 Wall St. door of the NYSE in New York

On U.S. exchanges 10.66 billion shares changed hands compared with the 13.29 billion average for the last 20 sessions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.