Stocks climb on Wall Street, driven by more tech gains
Stocks rose broadly in morning trading on Wall Street on Monday, led by more gains at big tech companies.
The S&P 500 was up 1.4% at 10:10 a.m. EST. The Dow Jones Industrial Average rose 325 points, or 1%, to 33,231 and the Nasdaq rose 1.8%.
Tech stocks were doing much of the heavy lifting for the market. The companies in the sector, with their high stock market values, tend to give the market a bigger boost or a bigger boost. Apple rose 1.9%.
Banks have gained ground alongside higher bond yields, allowing them to charge more lucrative interest rates on mortgages and other loans. The 10-year Treasury yield rose to 2.99% from 2.95% on Friday night. Bank of America rose 1.9%.
Several major companies were moving on a mix of deals and other news.
Twitter fell 4.2% after Tesla CEO Elon Musk threatened to cancel his deal to buy the company, saying Twitter refused to hand over data. Spirit Airlines rose 4.3% after JetBlue raised its offer to buy the rival carrier, and Amazon rose 4.7% after executing a 20-to-1 stock split.
The first gains in the major indices at the start of the week come as the broader market remains in a slump. The benchmark S&P 500 index is coming off its eighth losing week in the past nine.
Rising inflation has stung businesses and consumers. Inflation concerns also prompted the Federal Reserve to aggressively raise interest rates in an effort to slow economic growth enough to temper inflation. But Wall Street fears that raising interest rates too quickly or excessively could trigger a recession.
Meanwhile, rising interest rates put downward pressure on stocks and other investments.
Investors will get more data on the impact of inflation on Friday when the Department of Labor releases its May report on consumer prices.
Russia’s invasion of Ukraine further adds pressure on rising inflation with high energy prices. Lockdowns in China due to COVID-19 have also heightened concerns about worsening supply chain problems, but some of those measures are being lifted. Diners are returning to restaurants across most of Beijing for the first time in more than a month as authorities further eased pandemic restrictions.
Solar energy companies have gained ground following reports that the United States may lift tariffs on certain Chinese imports such as solar panels. Sunrun grew by 9% and SunPower by 5.4%.