US close: Dow, S&P 500 close at records as tech sector rallies

19 June 2017

(ShareCast News) - US stocks ended in the black on Monday, with the Dow and S&P 500 at record highs thanks to gains in the technology sector.
The Dow Jones Industrial Average closed up 0.7% at 21,528.99, the S&P 500 ended 0.8% higher at 2,453.46 and the Nasdaq advanced 1.4% to 6,239.01.

<strong></strong> and <strong>Whole Foods</strong> were in focus again, with both stocks on the front foot following Friday's deal announcement.

Chris Beauchamp, chief market analyst at <em>IG</em>, said: "After a 3% drop in the past two weeks, tech is once again in favour among US investors. In this market, 3% evidently counts as a healthy dip, with the Amazon M&amp;A from Friday still spicing up the session as well.

"It is odd to see all the problems that were supposed to be hamstringing markets disappear with barely a passing reference uttered, but we should not be surprised; this bull market has survived everything that could be thrown at it, and it has come back time and time again. It is hardly likely to be different this time."

Elsewhere, banks also found a bid after New York Fed chief William Dudley was quoted as having said at a roundtable discussion that the US central bank should continue hiking rates. The KBW gauge of lenders' shares was advancing 1.10% to 94.77.

Dudley sounded a confident note on the likelihood that wage pressures would eventually push inflation higher as the job market continued to tighten.

Across the pond in France, President Emmanuel Macron's party won a clear parliamentary majority at the weekend, weeks after his own presidential victory. His La Republique en Marche won more than 300 seats in the 577-seat National Assembly.

Investors in the US were also keeping an eye on the Brexit negotiations that kicked off between the EU and the UK in Brussels.

In US corporate news, <strong>Boeing </strong>was on the front foot after signing a memorandum of understanding with BOC Aviation for 10 737 MAX 10 airplanes at the 2017 Pairs Air Show.

<strong>Clovis Oncologies</strong> soared following positive phase 3 trials, while <strong>Rice Energy</strong> was the most heavily-traded issue on the NYSE after EQT announced it would acquire the oil and natural gas company for $6.7bn.

<strong>Valeant Pharmaceuticals </strong>pushed higher after nominating billionaire hedge fund manager John Paulson to its board.