Stocks traded sharply higher on Monday, led by strong gains in the tech sector, as Wall Street tried to build on the momentum from last week’s solid performance and shake off a continued rise in coronavirus cases.
The Dow Jones Industrials popped 384.78 points, or 1.5%, to pause for lunch at 26,212.14.
The S&P 500 gained 40.85 points, or 1.6%, to 3,180.22.
The NASDAQ Composite gained 249.01 points, or 2.4%, to 10,456.26, yet another new record high.
The biggest technology companies led the gains with Apple, Amazon, Microsoft and Google parent Alphabet all climbing more than 2%. Amazon shares also hit $3,000 for the first time. Netflix shares reach an all-time high as well.
The NASDAQ-100 — which is made up of the composite’s 100-largest nonfinancial stocks — jumped 2.7% on Monday, bringing its 2020 gains to more than 20%.
Deal making also boosted sentiment. Warren Buffett made his first major deal amid the market turmoil this year, with Berkshire Hathaway buying the natural gas transmission and storage assets from Dominion Energy for about $10 billion including debt.
Dominion Energy fell 4%, while Berkshire shares gained almost 2%. Uber shares gained 4.1% after it said it was buying food-delivery app Postmates in an all-stock deal worth $2.65 billion.
Data from the Institute for Supply Management showed a surprise expansion in the U.S. services sector. The firm’s non-manufacturing index rose to 57.1 in June, topping a Dow Jones estimate of 50.1.
The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed over a 24-hour span, a record. At a regional level, the biggest spike was seen in the Americas, where nearly 130,000 new cases were confirmed.
Prices for the 10-Year Treasury lost ground, raising yields to 0.70% from Thursday’s 0.67%. Treasury prices and yields move in opposite directions.
Oil prices gained 32 cents to $40.97 U.S. a barrel.
Gold prices added four dollars to $1,794.00 U.S. an ounce.
