Stocks of Energy and Financials Rally, Encountering Losses In Tech Shares
U.S. shares were mostly higher on Monday as a rally in energy and financials covered losses in tech shares. Besides, a private index on U.S. manufacturing activity, which was reported to rise to the highest level since mid-2014, boosted optimism over the U.S. economy and sent the U.S. stock market higher.
The stock benchmark index S&P500 advanced nearly 0.6 percent with nine out of eleven sectors trading on a positive note. Energy sector led gains, soaring more than 2.3 percent on Monday on the back of firmness in crude oil prices which extended their rally to an eighth session in a row. Meanwhile, financial sector was also on a sharp rise with shares of Morgan Stanley, JPMorgan Chase, Wells Fargo and Citgroup trading higher.
By contrast, tech and utility shares lagged behind. While the former lost 0.42 percent, the latter shed 0.32 percent.
Data released by the Institute for Supply Management (ISM) showed the gauge for domestic manufacturing activity advanced to 57.8 last month from May’s reading of 54.9. Spurred by the new orders index that rose to 63.5 in June from 59.5 a month earlier, the figure did not only top analysts’ forecast for an increase to just 55.2 but also marked the fastest growth pace in almost three years.
The New York Stock Exchange will be closed on Tuesday in the observation of the Independence Day.
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