Highlights
Major stock indexes moved up Monday as chip stocks bounced after a two-day correction. The Dow Jones industrial average firmed 0.3 percent while the S&P 500 was up 0.7 percent and the Nasdaq advanced by 1.1 percent. Bond yields were nearly unchanged while oil prices edged up and the dollar was mixed.
Renewed optimism about the AI buildout carried the day after a period of profit-taking on the momentum trade and amid more favorable analyst commentary . Big technology shares were better along with big banks, autos, and machinery. Lagging were restaurant chains, pharma, homebuilders, chemicals, and utilities.
Reaction Monday to an as-expected ISM services report was limited. On a quiet week for economic reports, attention is focused on the minutes of the recent Federal Reserve policy meeting, the new Fed chair’s first, as investors hope for a sense of the Fed’s policy leanings. The start of second quarter earnings season next week will be a big focus.