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US stocks are at new highs

Nov 21, 2016, 20:26 IST

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French dancer Philippe Priasso performs atop an earth mover as part of the annual Spring Dance Festival at the Sydney Opera House on September 9, 2010 in Sydney, Australia.Lisa Maree Williams/Getty

US stocks opened higher on Monday, pushing the benchmark S&P 500 index above its all-time closing record. 

The index gained 0.4% to as high as 2,191.70, topping the previous record of 2,190.15. Its intra-day high is 2,193.81. 

The Russell 2000, which includes small-cap companies that are worth no more than roughly $2 billion, also rose to a new high.

After the election of Donald Trump, investors pulled money out of bond funds and into equity funds at an unprecedented rate. They bet there would be higher inflation if Trump carries out his fiscal spending plans, which would be hurtful to bond returns. 

On Monday, stocks gained alongside crude oil, which rallied after Russian President Vladimir Putin said that a production-freeze agreement with other OPEC members "is not an issue for us." The group of oil producers is set to meet at the end of the month to discuss production limits. 

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Other commodities are also rallying. Natural gas is up as parts of the East Coast got their first real freezing weather of the season, increasing demand for heating. Copper is up 2% amid talk of higher Chinese imports, while gold and silver are rebounding from their post-election sell-off.

It's a shortened trading week due to Thanksgiving on Thursday, and volumes could shrink as the week progresses. The stock market will be open until 1 p.m. ET on Friday. 

Minutes of the Federal Reserve's most recent meeting will be released on Wednesday. But traders have long been fixated on the outcome of the December gathering. On Monday, Fed fund futures showed that they were 100% sure the Fed will raise interest rates at that meeting. 

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