(RTTNews) – Stocks moved mostly higher during trading on Monday, adding to the gains posted during last Friday’s session. The major averages all moved to the upside on the day, although buying interest was somewhat subdued.
The major averages finished the day in positive territory but off their early highs. The Nasdaq climbed 107.09 points or 0.5 percent to 22,591.15, the S&P 500 rose 17.51 points or 0.3 percent to 6,661.21 and the Dow inched up 68.78 points or 0.2 percent to 46,316.07.
The continued upward move on Wall Street partly reflected strength among tech stocks, with AI darling and market leader Nvidia (NVDA) jumping by 2.1 percent.
Video game maker Electronic Arts (EA) also surged by 4.5 percent after announcing an agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at approximately $55 billion.
Under the terms of the agreement, EA stockholders will receive $210 per share in cash, representing a 25 percent premium to the stock’s unaffected share price of $168.32 at market close on Thursday, September 25th.
However, traders seemed reluctant to make more significant moves amid concerns about a potential U.S. government shutdown ahead of a deadline at the end of the day on Tuesday.
Democrats have demanded that a temporary funding bill include an extension of enhanced Obamacare tax credits, while Republicans argue the issue should be debated after a funding bill is passed.
President Donald Trump is set to meet with Congressional leaders today to discuss avoiding a shutdown, although he has previously cast doubt on whether meeting with Democrats would be productive.
Traders were also looking ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.
The report, which is expected to show employment rose by 50,000 jobs in September, could impact the outlook for interest rates, but the Labor Department has indicated the release of the data could be delayed if the government shuts down.
Sector News
Computer hardware stocks turned in some of the market’s best performances on the day, with the NYSE Arca Computer Hardware Index surging by 4.1 percent
Western Digital (WDC) helped lead the sector higher, with the data storage company soaring by 9.2 percent after Morgan Stanley nearly doubled its price target for the stock.
Significant strength also emerged among brokerage stocks, as reflected by the 1.4 percent gain posted by the NYSE Arca Broker/Dealer Index.
On the other hand, energy stocks moved sharply lower amid a nosedive by the price of crude oil, dragging the NYSE Arca Oil Index and the Philadelphia Oil Service Index down by 2.3 percent and 1.7 percent, respectively.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday. China’s Shanghai Composite Index advanced by 0.9 percent and Hong Hong Kong’s Hang Seng Index surged by 1.9 percent, although Japan’s Nikkei 225 Index bucked the uptrend and declined by 0.7 percent.
Meanwhile, the major European markets showed modest moves to the upside on the day. While the U.K.’s FTSE 100 Index crept up by 0.2 percent, the French CAC 40 Index inched up by 0.1 percent and the German DAX Index closed just above the unchanged line.
In the bond market, treasuries regained ground after trending lower over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.6 basis points to 4.141 percent.
Looking Ahead
Reports on job openings and consumer confidence may attract attention on Tuesday, while traders are also likely to keep an eye on any last-minute developments in Washington.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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