Wall St closes higher as investors return to megacap stocks
Wall Street's three benchmarks ended higher on Monday as investors returned to megacap growth stocks, helping both the S&P 500 and Nasdaq Composite recover from their worst weekly performance since April.
The Dow Jones Industrial Average was also back in positive territory, breaking a two-session skid since hitting an all-time closing high last Wednesday.
Megacaps Alphabet, Meta Platforms and Tesla all advanced between 2.2% and 5.1% after being major drags on the market last week.
Nvidia also rose 4.8% after Reuters reported the artificial intelligence chip leader was working on a version of its new flagship AI chips for the China market that would be compliant with current U.S. export controls.
The Information Technology index climbed 2%, topping sectoral gainers and snapping a four-day losing streak.
«We think this move today probably has more to do with a rebound from the selling that occurred last week than anything else,» said Jason Pride, chief of investment strategy & research at Glenmede.
Chief among the other factors on traders' minds was a reexamination of the state of the presidential race after U.S. President Joe Biden announced his withdrawal and endorsed Vice President Kamala Harris' candidacy for the November election on Sunday.
Biden's exit could prompt investors to unwind trades on bets that a victory for Republican Trump would increase U.S. fiscal and inflationary pressures. But some analysts said markets could benefit from an increased chance of a divided government under the next
