Highlights
Equities edged up in mixed, quiet trading Monday with activity limited ahead of US consumer price figures due Tuesday and the Federal Reserve policy announcement on Wednesday.
The Dow Jones industrial average and the S&P 500 both gained 0.4 percent and the Nasdaq firmed 0.2 percent. US Treasury yields were flat to higher, oil prices rose, and the dollar slipped.
Many investors appeared to be shifting out of the Magnificent Seven big tech stocks which have led the market higher lately, and opting for less-highly-valued sectors. Best sectors Monday included industrials, financials, consumer staples and health care. Lagging were communications services. Rotation out of megacaps generally restrained the major averages.
Separately, a rally in semiconductors bolstered the major indexes after the Biden administration approved subsidies under the CHIPS and Science Act.
The Dow Jones industrial average and the S&P 500 both gained 0.4 percent and the Nasdaq firmed 0.2 percent. US Treasury yields were flat to higher, oil prices rose, and the dollar slipped.
Many investors appeared to be shifting out of the Magnificent Seven big tech stocks which have led the market higher lately, and opting for less-highly-valued sectors. Best sectors Monday included industrials, financials, consumer staples and health care. Lagging were communications services. Rotation out of megacaps generally restrained the major averages.
Separately, a rally in semiconductors bolstered the major indexes after the Biden administration approved subsidies under the CHIPS and Science Act.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
