Investing.com — U.S. stocks rose on Monday, extending recent gains as investors awaited further signals on interest rates from a slew of Federal Reserve officials and key labor market readings this holiday-shortened week.
At 09:35 ET (13:35 GMT), the S&P 500 was up about 240 points, or 0.6%, the Dow Jones Industrial Average was up 14 points, or 0.3%, and the Nasdaq Composite was up 22 points, or 0.1%.
Major indexes started the new week – cut short by the Independence Day holiday on Thursday – on a positive note, adding to the gains seen in the previous quarter.
In the second quarter, it added 3.9% and 8.3%, respectively, while losing 1.7%. The Nasdaq posted its third straight positive quarter for the first time in five straight quarters that ended in 2021, with big tech stocks leading the way thanks to enthusiasm for all things AI.
Payrolls, Fed Comments in Focus
The focus this week will be on the release of key data for June on Friday. The reading is set to provide further insights into the labor market, whose resilience has also been a major point of contention for the Fed in cutting interest rates.
The Federal Reserve’s main inflation indicator later last week showed that inflation is slowing very gradually, meaning there is still a great deal of uncertainty about when the US central bank will start cutting interest rates.
Ahead of the non-farm payrolls data, Tuesday’s report is expected to show a new decline in non-farm payrolls in May.
Wednesday is set to see the release of the results of the US Federal Reserve’s June meeting, which will be analysed for the central bank’s view on the economic outlook and factors influencing the outlook for monetary policy.
In addition, there are a slew of Fed officials scheduled to speak this week, led by Powell, who is scheduled to appear at the European Central Bank’s annual forum in Portugal on Tuesday.
Boeing agrees to buy Spirit AeroSystems
Among individual stocks, Boeing (NYSE:) rose 2.2% after the plane maker agreed to buy Spirit AeroSystems (NYSE:), which rose 3.5%, for $4.7 billion, ending a long-running pursuit that had been complicated by contracts it had concluded. Spirit with Boeing’s main competitor Airbus (EPA:).
Nvidia (NASDAQ:) stock fell 1.2%, holding on after gains of close to 150% so far this year. However, Morgan Stanley still sees upside, raising its price target for semiconductors, calling it “the most compelling narrative in near-final AI.”
Chewy (NYSE:) rose 7.6% after Keith Gill, the stock influencer known as “Roaring Kitty,” revealed a 6.6% stake in the pet products retailer, while GameStop (NYSE:) fell 6.9% after… Gill is charged with securities fraud in a class action lawsuit involving a video game seller.
Crude oil rises on Caixin manufacturing PMI rise
Crude oil prices rose on Monday, supported by a special survey that showed that manufacturing activity in China grew more than expected in June, giving hope that this important economy is recovering steadily.
By 09:35 EST, US crude futures (WTI) were trading 0.8% higher at $82.19 per barrel, while the Brent contract was up 0.9% at $85.74 per barrel.
The index rose to 51.8 points in June, compared to expectations that indicated a reading of 51.5 points, and the previous month’s reading of 51.7 points.
The reading contrasts with government data released on Sunday, which showed China’s manufacturing sector contracted for the second straight month in June.
China is the world’s largest importer of crude oil, and the recovery in its manufacturing sector indicates increased demand in the second half of the year.
(Ambar Warrick contributed to this article.)
