A gauge of global stocks rose for the first time in three sessions on Monday, powered by a rally in U.S. equities, while U.S. Treasury yields climbed after a sharp drop in the prior week as investors awaited comments from Federal Reserve officials.
On Wall Street, U.S. stocks slowly gained steam after a sluggish start to the session to send the Nasdaq Composite and S&P 500 to record highs, led by gains in technology (SPLRCT) and consumer discretionary shares.
Economic data showed manufacturing activity in the New York region improved in June, but remained in contraction territory with a reading of negative 6. Investors will closely eye retail sales data for May on Tuesday for signs of consumer health.
“There really isn’t an appetite to be a real seller right now because there is a perception that momentum is going to continue, and stocks are going to continue winning,” said Daniela Hathorn, senior market analyst at Capital.com.
“The fact that the rally has been driven mostly by a select few stocks, that would mean that the pullback could be even deeper.”
The Dow Jones Industrial Average rose 188.94 points, or 0.49%, to 38,778.10, the S&P 500 gained 41.63 points, or 0.77%, to 5,473.23 and the Nasdaq Composite gained 168.14 points, or 0.95%, to 17,857.02.
Goldman Sachs raised its year-end S&P 500 price target to 5,600 from the prior 5,200, while Evercore ISI lifted its price target to 6,000 from 4,750.
