U.S. stocks recovered on Monday after technology stocks recovered from a week long slump. Wall Street stocks edged down last week due to the massive tech-sector selloff caused by a 7% decline in Apple (NASDAQ:AAPL) shares. Most tech stocks also weighed down on the U.S. market due to concerns that the sector has become increasingly expensive.
On Monday, the S&P 500 index rallied 0.5% to 2,448 on track for a new record high while and closed 0.8% during the trading session. Tech stocks have led almost 9.4% of the rally in the index. Overall the S&P 500 recorded 49 new 52-week highs and ten lows.
The Dow Jones Industrial Average also added 13 points or 0.1% to 21,473. The Nasdaq also rose by 0.2% or 10.25 points to 5,776.25.
Tech stocks were among the biggest movers on Monday with the Dow Jones closing 0.7% during the trading session due to the tech sector’s resurgence. Facebook (NASDAQ:FB) shares gained 0.2%, Apple shares rallied 0.6%, Amazon.com (NASDAQ:AMZN) rose 0.4%, while Netflix (NASDAQ:NFLX) added 0.3%. Google-parent Alphabet (NASDAQ:GOOG) also gained 0.4%.
The Nasdaq composite has moved lower during the past couple of weeks due to concerns regarding tech stocks and fears that the Federal Reserve interest-rate hike would send investors to safe-haven stocks.
Although Chicago Fed President Charles Evans stated during late Monday trading that the central bank might have implemented its last interest rate hike this year and added that he is supporting the current policy with a gradual interest rate hike, New York Fed President William Dudley made hawking comments against a slower rate hike that made the markets optimistic.
This led U.S Treasury yields to rally on Monday taking the two-year note to its highest level since March. Dudley’s comments also led the US Dollar’s rally to a three-week high with the U.S. dollar index rising 0.4% against six other major currencies.
Aside from tech stocks, the biotechnology sector under the Nasdaq also gained 2.5% with stocks such as Biogen (NASDAQ:BIIB) and Clovis Oncology (NASDAQ:CLVS) set for their biggest one-day rally since February. The healthcare index under the S&P also recorded new highs. Biogen rallied 3.96% to $261.71 following a neutral rating from UBS analysts.
Financial stocks also led most of the gains under the S&P 500 due to comments from Dudley regarding the U.S. inflation being brought up by improving labor market conditions. From having been one of the least performer’s this year, the sector recovered to new grounds on the Fed’s decision last week to raise interest rates and start cutting its massive $4.5 billion balance sheet this year.