U.S. stocks closed higher on Monday, with gains from Big Tech companies offsetting a drop in oil-and-gas stocks due to a significant decline in the price of crude oil. The S&P 500 rose 0.3%, rebounding from its first losing week in seven, while the Dow Jones Industrial Average and Nasdaq composite also saw gains. Big Tech stocks like Apple and Meta Platforms led the way, with several of the “Magnificent Seven” scheduled to report their latest profits this week. These high-flying stocks have been pivotal in moving the S&P 500.
The Big Tech companies are facing pressure to deliver more growth after concerns that their stock prices had outpaced their profits, leading to a summertime dip. Tesla, another member of the Magnificent Seven, saw a surge in its stock price after reporting better-than-expected profits last week. The gains in Big Tech helped offset losses in the oil-and-gas sector, which were impacted by the sharp decline in oil prices following an attack on Iranian military targets by Israel. The attack, though less severe than expected, raised concerns about potential disruptions in crude oil supply from Iran.
Financial markets are also navigating the volatility surrounding the U.S. presidential election, with election day approaching. Treasury yields have been rising as reports continue to show a strong U.S. economy, leading to hopes of avoiding a recession despite high inflation. Investors are closely watching the U.S. jobs report for any signs of solid hiring that could support the economy. Additionally, Trump’s chances of re-election improving could impact inflation and interest rates in the long term.
Trump Media & Technology Group saw a significant increase in its stock price, reflecting the impact of Trump’s re-election odds on the market. Other companies, such as Robinhood Markets and Delta Air Lines, also saw gains due to various factors. Overall, the S&P 500, Dow Jones, and Nasdaq closed higher on Monday, while stock markets in Japan and Europe also saw mostly positive movements. The outcome of the U.S. election and economic data, including job reports and inflation figures, will continue to influence investor sentiment in the coming days. AP Business Writers contributed to the reporting on this news article.
