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The Dow Jones Industrial Average rallied on Monday as gains in economically sensitive stocks offset losses from mega-cap tech stocks like Microsoft.
The 30-stock index leaped 357.96 points, or 1.3%, to 27,791.44. Boeing and Dow Inc. were among the best-performing stocks in the blue-chip index, rising more than 5% each.
Caterpillar, considered to be a bellwether for the global economy, also climbed more than 5%. JPMorgan Chase added 1.2%.
The S&P 500 regained 9.19 points to 3,360.47, as both the energy and industrials sectors rose more than 2.4% as cyclical stocks led the major indexes higher on the week’s first day of trading. Monday’s session was the S&P 500's seventh straight day of gains. The advance left the S&P 500 less than 1% away from a record high.
The NASDAQ faltered 42.63 points by the close to 10,968.36, as traders trimmed positions in Big Tech stocks. Facebook, Netflix shares slid at least 2% each. Amazon dipped 0.6% and Alphabet fell 0.1%.
Monday’s moves came after President Donald Trump signed several executive orders over the weekend aimed at extending coronavirus relief.
Those orders continue the distribution of expanded unemployment benefits, defer student loan payments through 2020, extend a federal moratorium on evictions and provide a payroll tax holiday.
However, the unemployment benefit will be continued at a reduced rate of $400 per week. Originally, the benefit provided workers impacted by the pandemic with $600 per week.
Trump’s moves come after congressional leaders failed to make progress on a new coronavirus stimulus package last week. Several benefits from a package signed earlier in the year lapsed at the end of July, raising uncertainty about the U.S. economy moving forward.
Still, Trump’s orders face a legal challenge as continuing the programs would require federal funding, which Congress controls. Democrats have insisted they will not support a bill that does not extend the $600 per week benefit.
Investors also kept on eye on the worsening relationship between the U.S. and China. On Monday, China said it would apply sanctions against 11 U.S. citizens including senators Ted Cruz and Marco Rubio. The move is a retaliation against Washington’s sanctions on 11 Hong Kong and Chinese officials for curtailing political freedoms in the city.
Prices for the 10-Year Treasury lost a bit of ground, raising yields to 0.58% from Friday’s 0.56%. Treasury prices and yields move in opposite directions
Oil prices climbed 82 cents to $42.04 U.S. a barrel.
Gold prices gained $8.20 to $2,036.20 U.S. an ounce.
