Investing.com -- U.S. stocks rose sharply as the S&P 500 Composite index hit all-time intraday and closing highs on Monday, after global equities received a boost from broad indications that Japan could approve fresh stimulus measures following a resounding victory from Shinzo Abe's party in upper house elections over the weekend.
In Monday's session, the S&P 500 soared to a record intraday level of 2,143.16, eclipsing the previous high of 2,134.72 from May 20, 2015. At the close of trading, the S&P 500 fell back slightly to 2,137.16, up 7.26 or 0.34% on the session. Nevertheless, the broader index held onto gains to post its highest closing level on record, considerably above the previous high of 2,130.82 from last May. Stocks in the Basic Materials, Consumer Services and Financial sectors led, each gaining more than 0.50% on the session. Stocks in the health care sector, along with safe-haven plays in the Utilities and Telecom industries lagged, all closing slightly lower for the day.
Meanwhile, the Dow Jones Industrial Average gained 80.19 or 0.44% to 18,226.93 and the NASDAQ Composite index added 31.88 or 0.64% to 4,988.64, amid a strong performance from large-cap tech stocks. The Dow remains less than 1% or roughly 100 points from all-time record highs, while the NASDAQ cleared the key 5,000 level for the first time since December 31.
Stocks on Wall Street began to rally in the overnight session as Dow futures moved higher, after Abe's Liberal Democratic Party (LDP) recorded a landslide victory in parliamentary elections over the weekend. The dominating win could provide the Japanese prime minister with a mandate to propose sweeping constitutional reforms in the coming months. Already, Abe unveiled a comprehensive 10 trillion yen ($98 billion) stimulus plan on Monday, aimed at bolstering growth through a wide range of public works programs. As a result, the Nikkei surged nearly 4% on Monday, triggering a rally in global equities throughout the world.
The top performer on the Dow was Boeing Company (NYSE:BA), which gained 1.95 or 1.50% to 132.04. Earlier on Monday, Qatar Airways disclosed that they are in advanced talks with the Everett, Washington-based aircraft manufacturer to receive a "large number," of 737 Max airplanes. Qatar Airways CEO Akbar Al Baker confirmed his interest in a transaction with Boeing, while expressing dismay with the quality of Airbus' A320 neo planes in an exclusive interview with CNBC. The worst performer was UnitedHealth Group Incorporated (NYSE:UNH), which fell 0.95 or 0.67% to 140.32. In total, only three of 30 Dow components closed lower on the day.
The biggest gainer on the NASDAQ was NetEase Inc (NASDAQ:NTES), which jumped 11.49 or 6.21% to 196.62. Shares in the Chinese internet online services company bounced, one session after falling sharply after the government tightened online ad regulations. The worst performer was Biomarin Pharmaceutical Inc (NASDAQ:BMRN), which fell 2.90 or 3.17% to 88.59, as speculation continued to swirl that the Novato, California drug company could emerge as a takeover target for Swiss drug manufacturer Roche.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,064-946 margin.