Stocks open higher ahead of economic data
US stocks edged higher on Monday, boosted by technology stocks, as investors waited for more signals from the Federal Reserve.
The S&P 500 rose 0.8%, pointing to the broad market index extending Friday’s 0.8% gain. The Nasdaq climbed 1.2%, indicating a larger rise in tech stocks. Meanwhile, the Dow Jones Industrial Average also rose 0.7%.
Investors are largely focused on the Federal Reserve’s annual economic policy symposium later this week, awaiting further clues as to when policymakers may slow down bond buying. At the same time, growing concerns that high levels of Covid-19 infection could slow the global economic recovery pushed stocks down last week. Dallas Fed Chairman Rob Kaplan said on Friday he may rethink his call to start cutting asset purchases soon if the Delta variant weighs on growth.
“If there is any sign that the US economy is slowing, the Fed will not shrink,” said Michael Hewson, chief market analyst at CMC Markets. “There is a long road between blazing a trail for tapering and actually doing it.”
Shares of ridesharing companies declined after a California judge said a move to continue to treat their drivers as independent contractors rather than employees is unconstitutional. Uber Technologies recently rose 0.2% and Lyft fell almost 1%.