By Anna Hirtenstein and Michael Wursthorn
The S&P 500 eked out a modest gain Monday, shaking off earlier losses, thanks to rallying shares of energy companies.
The stock rally has paused lately, with both the S&P 500 and Dow Jones Industrial Average logging their steepest one-week declines since June on Friday.
Money managers are hoping markets will get a fresh boost in the coming days, which will bring about new data on inflation, retail sales, and consumer confidence. Investors say they are also closely watching a proposed $3.5 trillion spending plan from Washington that could potentially send more funds toward healthcare, education, and climate legislation.
"I do believe that the bulls have a little more ammunition than the bears: fiscal support still remains on tap, activity indicators are strong. Risk is still on."
-said Gregory Perdon, chief investment officer of Arbuthnot Latham.
The $S&P 500 index(.SPX.US)$ advanced 10.15 points, or 0.2%, to 4468.73. The $Nasdaq Composite Index(.IXIC.US)$ fell 9.91 points, or 0.1%, to 15105.58, paring declines toward the end of the trading day. The $Dow Jones Industrial Average(.DJI.US)$ posted the strongest performance of the three indices, rising 261.91 points, or 0.8%, to 34869.63.
Energy shares were among the strongest performers in the S&P 500 on Monday, rising alongside the price of oil after the Organization of the Petroleum Exporting Countries said it expected global demand to exceed pre-pandemic levels next year.
Marathon Oil, APA, and Occidental Petroleum rose at least 6.5% apiece. U.S. crude for October delivery gained 73 cents, or 1%, to $70.45 a barrel.
Meanwhile, shares of Texas-based miner and explorer Uranium Energy jumped 9 cents, or 2.8%, to $3.30 as individual investors sought out bets that would benefit from a recent rise in uranium prices.
$Airbnb(ABNB.US)$ slipped $4.88, or 3%, to $160.32 after $Goldman Sachs(GS.US)$ analysts recommended investors sell the stock.
Government bond prices ticked higher Monday, with the yield on the benchmark 10-year U.S. Treasury note edging down to 1.323% from 1.340% on Friday. Yields fall as bond prices rise.
The current level of yields is signaling that bond investors see higher inflation levels as transitory, according to Georgina Taylor, a multiasset fund manager at Invesco. On Tuesday, traders will get a look at the latest readings on consumer prices.
"There is not enough inflationary pressure to really feel a reassessment of nominal growth over the long term."
-Georgina Taylor said.
Elsewhere, the Stoxx Europe 600 ticked up 0.3%, snapping a four-session streak of losses.
Japan's Nikkei 225 added 0.2%, while Hong Kong's Hang Seng Index fell 1.5%.
-- Akane Otani contributed to this article
(END) Dow Jones Newswires
September 13, 2021 16:42 ET (20:42 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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