U.S. stocks rose Monday ahead of manufacturing data that could offer fresh insights into the pace of the global economic recovery.
The S&P 500 advanced 0.4% after the opening bell, on pace for further gains after closing out its best month since November. The Dow Jones Industrial Average climbed about 225 points, or 0.7%. The technology-heavy Nasdaq Composite added about 0.2%.
Investors are cheering signals that economic growth is picking up in most developed countries, with companies’ earnings growth and positive outlook adding to the optimism. At the same time, money managers are assessing the continued spread of Covid-19 in many parts of the world and trying to gauge the outlook for inflation, which could erode the value of investment returns.
“There is a thin balance between all the positives such as earnings momentum, the reopening, the rollout of vaccines and some limiting factors like [high] valuations and inflation perspectives,” said
head of private banking investments at SYZ Private Banking. “The market will balance between all these positives and negatives, but we believe the positives will outweigh the negatives.”
Two gauges of the health of the U.S. manufacturing sector in April are slated for 9:45 a.m. ET and 10 a.m. The data today will be another indicator of the strength of this momentum, Mr. Filip said. “Economic momentum will improve, but the big question is, what’s already priced in the market?”
Similar purchasing managers’ surveys for manufacturing for the eurozone, Germany, France, Spain, Switzerland and Italy broadly showed that activity expanded in April, albeit not as much as analysts were expecting in some countries.
Federal Reserve Chairman
is scheduled to speak at 2:20 p.m. at a virtual conference. Investors are likely to be watching for any fresh insights from Mr. Powell on how the economy is faring.
In corporate news,
sank 4.5% after its quarterly revenue came in below analysts’ estimates. In contrast, Moderna climbed about 4.6%. The drugmaker said Monday that it will supply 34 million Covid-19 vaccine doses to an international program that distributes the shots to developing countries.
Tesla edged down 1.9% following a news report that its European battery gigafactory will be delayed by six months.
Among the S&P 500’s 11 sectors, the energy and materials groups posted the biggest gains shortly after the opening bell.
In bond markets, the yield on the 10-year Treasury note ticked down to 1.627%. It ended last week at 1.632%, posting its biggest weekly rise since mid March.
Overseas, the pan-continental Stoxx Europe 600 rose 0.5%.
Hong Kong’s Hang Seng Index fell 1.3% by the close of trading. India’s Sensex index declined 0.6%, after losing 1.5% last month. Markets in Japan and China were closed for a holiday.
—Caitlin McCabe contributed to this article.
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