S&P 500 closes 0.1% from record high after climbing on tech-sector strength
- US stocks climbed on Monday as investors weighed fresh capital injections from the People's Bank of China.
- The central bank added 700 billion yuan ($101 billion) to China's financial system on Monday, signaling the adoption of a more accommodative monetary-policy strategy.
- The S&P 500 crept back near its February 19 peak after failing to reach records last week. It closed just 0.1% from the threshold.
- Oil gained after early losses, with West Texas Intermediate crude climbing as much as 2.3%, to $42.97 per barrel.
- Watch major indexes update live here.
US stocks gained on Monday, placing the S&P 500 just 0.1% below a record-high close.
The benchmark index crept closer to its February 19 peak after failing to break through the threshold last week. Mega-caps including Amazon and Alphabet drove the index higher but lagging industrials slowed the surge. Financials plunged after Berkshire Hathaway slashed its positions in JPMorgan and Wells Fargo.
Here's where US indexes stood at the 4 p.m. ET market close on Monday:
- S&P 500: 3,381.99, up 0.3%
- Dow Jones industrial average: 27,844.91, down 0.3% (86 points)
- Nasdaq composite: 11,129.73, up 1%
Stocks opened higher as investors found hope in new stimulus abroad. The People's Bank of China injected 700 billion yuan ($101 billion) into the country's financial system on Monday, establishing a more accommodative monetary-policy stance from China's government. The injection, made through China's medium-term lending facility, could prelude interest-rate cuts or other, more potent easing measures.
Investors continued to consider how a lack of fiscal stimulus could halt the US recovery. Senators went on recess on Friday, punting stimulus talks into September unless a majority of lawmakers decide to reconvene ahead of schedule. Economists have said the stimulus deadlock could plunge the country into a longer-than-necessary recession.
"There has been a solid V-shaped rebound so far and the US economy has already made up a lot of lost ground," Michael Zezas, a managing director at Morgan Stanley, said in a note. "However, prolonged delays in stimulus could weigh on household consumption and prompt state and local austerity."
Barrick Gold surged on news that Warren Buffett bought a stake in the mining company. Berkshire Hathaway took in 21 million Barrick shares for roughly $564 million in the last quarter, a Securities and Exchange Commission filing published Friday said.
Tesla bounced following a new price-target boost from the Wedbush analyst Dan Ives. The analyst said he sees Tesla shares leaping 15% from Friday's close on surging demand in China and technology reveals at the company's Battery Day event on September 22.
Nvidia leaped to a record high after Susquehanna analyst Christopher Rolland lifted his price target for the shares to $540 from $450, implying a 17% rally from Friday's close. Rolland expects the chipmaker to trounce second-quarter expectations and guide for a strong third quarter as it begins selling new Ampere gaming processors.
Rackspace rallied following reports that Amazon is interested in acquiring a minority stake in the cloud company. An anonymous source told Reuters that a deal requires up to two months of negotiations and isn't yet guaranteed.
Oil prices reversed losses after plunging on fresh virus risks in Europe. West Texas Intermediate crude gained as much as 2.3%, to $42.97 per barrel. Brent crude, oil's international standard, gained 1.4%, to $45.41 per barrel, at intraday highs.
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