U.S. stocks edged up Monday boosted by technology stocks as investors awaited more signals from the Federal Reserve.
The S&P 500 ticked 0.8% higher, pointing to the broad market index extending Friday’s 0.8% gain. The Nasdaq climbed 1.2%, indicating a larger rise in technology stocks. Meanwhile, the Dow Jones Industrial Average also rose 0.7%.
Investors are largely focused on the Federal Reserve’s annual economic policy symposium later this week, awaiting fresh cues on when policy makers may slow bond purchases. At the same time, rising concerns that elevated Covid-19 infection levels may slow the global economic recovery sent stocks lower last week. Dallas Fed President Rob Kaplan said Friday he may rethink his call to begin tapering asset purchases soon if the Delta variant weighs on growth.
“If there is any sign that the U.S. economy is slowing, the Fed won’t taper,” said Michael Hewson, chief market analyst at CMC Markets. “There is a long way between laying out a pathway to tapering and actually doing it.”
Shares in ride-hailing firms declined after a California judge said a measure that sought to continue treating their drivers as independent contractors rather than employees is unconstitutional. Uber Technologies recently rose 0.2% and Lyft fell nearly 1%.
On the economic front, a gauge of existing home sales surprised to the upside in July. Economists had forecast a moderate pullback after prices hit a record in June.
Preliminary purchasing managers’ surveys on manufacturing and services for August missed economists’ estimates. Similar data for Australia overnight showed a contraction in activity amid tighter Covid-19 restrictions. Indicators for Japan and the eurozone came in below economists’ expectations.
“We’ll probably see signs of [global] growth leveling off, this will be the overall picture,” said Carsten Brzeski, global head of macro at ING. “There are two reasons for that: a bit more fear and uncertainty stemming from the Delta variant and supply chain frictions.”
The yield on the benchmark 10-year Treasury note ticked up to 1.260% from 1.259% on Friday. Yields rise when prices fall. The current level of yields is signaling that the bond market is expecting a continuation of extremely loose monetary policy, Mr. Brzeski said.
Oil prices rebounded, with Brent crude rising over 4.9% to trade at $68.35 a barrel, after the benchmark commodity closed out its worst week since October.
The price of bitcoin rose above $50,000 for the first time since May. It traded around $50,250, an over 3% increase from its 5 p.m. level on Friday. PayPal expanded its cryptocurrency services to the U.K. on Monday, allowing its customers in Britain to buy, hold and sell digital assets such as bitcoin on its platform.
Overseas, the pan-continental Stoxx Europe 600 ticked up 0.6%.
Among European equities, British supermarket chain J Sainsbury jumped over 15% on a report that private equity giant Apollo Global Management is considering a takeover.
In Asia, most major benchmarks rose by the close of trading. The Shanghai Composite Index added 1.5% and Hong Kong’s Hang Seng Index advanced 1.1%.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
Tech Stocks Boost S&P 500, Nasdaq - The Wall Street Journal
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