After an indecisive start, stocks experienced a slight rise during the trading session on Monday. This shift resulted in the S&P 500 index surging beyond the 5,000 level. Currently, the major indexes are nearing their session highs with the Dow increasing by 40.26 points or 0.1% to 38,711.95, the Nasdaq jumping by 42.48 points or 0.3% to 16,033.14, and the S&P 500 advancing by 4.59 points or 0.1% to 5,031.20.
The modest buoyancy observed on Wall Street is potentially a continuation of the ascending trend recently noted, leading the S&P 500 above the 5,000 mark for the first time. The tech-dominant Nasdaq has also made considerable gains recently, nearing the record highs recorded in November 2021.
However, overall trading activity remains relatively muted with a number of traders choosing to wait for several pivotal economic reports to be released in the imminent future.
Tuesday will see the Labor Department releasing its report on consumer price inflation for January, a data point that may considerably sway the future perspective on interest rates. Additional reports covering retail sales, industrial production, producer price inflation, and consumer sentiment are expected to draw attention as the week progresses.
Among individual stocks, Teva Pharmaceutical (TEVA) shares have surged after an upgrade in the company's rating from neutral to overweight by Piper Sandler. Rocket Lab (RKLB), a space company, has also seen a marked upturn after Citi resumed stock coverage with a Buy rating.
In contrast, shares of Big Lot (BIG) have fallen significantly following a downgrade from Hold to Sell by Loop Capital.
Sector-specific news reveals considerable growth among networking stocks with the NYSE Arca Networking Index rising by 2.4%. Computer hardware stocks are exhibiting similar strength with the NYSE Arca Computer Hardware Index jumping by 2.2% and hitting a record intraday high. Housing stocks also see a notable rise with a 1.5% hike by the Philadelphia Housing Sector Index. Notable growth is also observed across banking, energy, and semiconductor stocks, while pharmaceutical stocks have subtended.
In international trade, stocks in the Asia-Pacific region mostly decreased on Monday, with several key markets closed due to holidays. Australia's S&P/ASX 200 Index dropped by 0.4% and India's Sensex fell 0.7%. Conversely, major European markets saw a rise with the U.K.'s FTSE 100 Index incrementing by 0.1%, and the German DAX Index and the French CAC 40 Index increasing by 0.5% and 0.6% respectively.
In the bond market, treasuries returned to the unchanged line after an initial rise. Consequently, the yield on the benchmark ten-year note, which operates inversely to its price, remained stagnated at 4.187% after seeing a low of 4.150%.
