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Stocks traded sharply higher on Monday 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 roared ahead 341.38 points, or 1.3%, to start Monday at 26,168.84.
The S&P 500 gained 40.85 points, or 1.3%, to 3,171.27.
The NASDAQ Composite gained 186.87 points, or 1.8%, to 10,394, yet another new record high.
Stocks closely tied to an economic reopening gained on Monday. Carnival Corp took flight 1.8%, and Royal Caribbean jumped 3.5%. American Airlines and Delta Air Lines gained more than 2% each. Shares of retailer Gap were higher as well.
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.
The biggest technology companies also led the gains with Apple, Amazon, Microsoft and Google parent Alphabet all climbing more than 0.8%. The NASDAQ-100 — which is made up of the composite’s 100-largest non-financial stocks — jumped 1.7% on Monday, bringing its 2020 gains to more than 20%.
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.
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 eked ahead three cents to $40.68 U.S. a barrel.
Gold prices added $3.80 to $1,793.80 U.S. an ounce.
