Highlights
Stocks advanced Monday with cyclicals leading as normal trading resumed after the holiday period. The Dow Jones industrial average gained 1.2 percent, the S&P 500 firmed 0.6 percent and the Nasdaq was up 0.7 percent. US Treasury yields and the dollar fell while oil prices rose.
The pause in the market rally over the holiday with Magnificent Seven and technology firms facing pressure finally gave way to a broader advance paced by energy and financials among value/cyclicals.
Energy stocks including oil servicers led the winners amid speculation the US firms will benefit from rebuilding efforts in Venezuela. Financials outperformed, paced by Goldman and JP Morgan. Megcap technology shares lagged to hold back the major averages while megacaps Amazon and Tesla advanced to lead consumer discretionary.
US manufacturing purchasing managers data came in softer than expected, which appears to set the stage for weak employment figures due for release on Friday.
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.