After a mostly disappointing week, US stocks were mostly positive on Monday after all of the three major indexes started the beginning of the third quarter a little higher as most energy and financial stocks rallied carrying most indexes with it who declined last week on another tech stock sell-off.
Last week, technology stocks such as Facebook, NVIDIA, and Comcast led most of the losses as most investors shied away from the sector and moved into higher dividend stocks and safe haven assets. Tech stocks lost ground as early as two weeks ago starting with the massive tech sell-off caused by the Apple analyst downgrade.
The Dow Jones Industrial Average started the first trading session of the month, 0.61% higher at 21,479.27. Among the index’s top performers were banking stocks such as JPMorgan Chase & Co who rose 1.85 points or 2.04% higher before closing at 92.75 and Goldman Sachs Group Inc. which as up by 2.42% or 5.38 points to close at 226.28. Energy stock Chevron Corporation also rallied by 1.89% before closing at 106.30 during the after-hours trading.
The Dow Jones Transportation Average which is currently up by 0.79% closed at 9.639.63 recording the indicator’s first all-time high since March.
The S&P 500 index also gained 5.61 points or 0.23% at 2,428.02 due to the rally in financial and energy stocks by 1.3% and 2% respectively although tech stocks inched 0.9% lower. Last week, the S&P logged its biggest gain in the first two-quarters of the year since 2013.
On the other hand, the Nasdaq Composite Index slumped behind by 0.5% or 30.36 points lower before ending at 6,110.06. Shares of Amazon were in a bind earlier last month after investors raised their concerns that the company’s valuations were getting expensive.
Among the worst performers in the index were tech stocks such as Microsoft Corporation, which slumped by 1.10% before closing 0.76 points lower or 1.10% and Intel Corporation which fell 0.83% or 0.28 points ending at 33.46 during the session.
Although most of the indexes logged gains during the day due to the positive US manufacturing data and a slightly upbeat US dollar, some of the indexes closed slightly lower during the day after most tech stocks showed another slump during Monday’s trading session.
On the other hand, the upbeat US manufacturing data send the Treasury yields up while it also boosted optimism on the current state of the US economy.