Rebounding technology shares spurred a large rally on Wall Street Monday, with the S&P 500 Index reaching fresh all-time highs.
The large-cap index advanced 20.31 points, or 0.8%, to 2,453.46. Eight of 11 sectors contributed to the gain.
Tech stocks rallied 1.7%, shaking off a bout of short-selling over the past two weeks. All seven industrial components tracked by the S&P 500 finished in positive territory, with hardware and semiconductors leading the rally.
Sector rotation and valuation concerns drove tech shares lower last week, as investors opted for more defensive plays. Technology is by far the best-performing sector this year with gains of more than 17%. By comparison, the S&P 500 Index has gained less than 9% over the same period.
Shares of financials companies rose 1% on Monday. Healthcare gained 1.1%.
On the opposite side of the ledger, utilities dropped 0.4% and telecom finished 0.2% lower. Energy shares posted the biggest losses, falling 0.7% as a sector as oil prices struggled for gains.
Although there was no apparent catalyst behind the early-week rally, investors were eyeing a planned meeting between U.S. President Donald Trump and several technology CEOs, including Apple’s Tim Cook and Jeff Bezos of Amazon.
There are no major economic data releases scheduled for Monday. Private reports on existing home sales and manufacturing are due later in the week.
Before the start of New York trade, New York Fed President William Dudley said inflation should return to target as wages rise along with jobs. The consumer price index (CPI) has weakened to an annual rate of 1.9%, Labor Department data for May showed last week.
Dudley is a member of the Federal Open Market Committee (FOMC) that voted to raise interest rates last Wednesday.
S&P 500 Index