Investing.com – The S&P 500 notched a fresh record high led by a rise in financials as U.S. government bond yields moved higher ahead of the Federal Reserve's interest rate decision later this week.
The S&P 500 gained 0.11% to close at an all-time high of 2,943. The Nasdaq Composite climbed 0.19% to 8,161.85, and the Dow added 0.04%. Both indexes hit new intraday highs as well.
With just days to go until the Federal Reserve delivers its decision on monetary policy on Wednesday, bank stocks racked up gains on the back of a rise in United States 10-Year, despite subdued inflation data.
The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, slowed to 1.8% in the 12 months through March.
Goldman Sachs (NYSE:NYSE:GS), Citigroup (NYSE:NYSE:C) and Morgan Stanley (NYSE:NYSE:MS) closed higher as U.S. bond government yields rose despite subdued economic data.
Communication services stocks propped up the broader market, led by a rally in Twitter (NYSE:TWTR) as the social media company added to gains from a week ago, when it reported results that topped estimates from Investing.com.
FANG stocks were also in focus, with Facebook (NASDAQ:FB) rising 2% ahead of its annual F8 developer conference that starts Tuesday. CEO Mark Zuckerberg is expected to offer more details about the company's plans to ramp up security of user data, particularly on its messaging apps.
Alphabet (NASDAQ:GOOGL), meanwhile, slid 7% in after-hours trade after the company after reporting mixed results, with earnings beating, but revenue falling short of estimates from Investing.com.
In Industrials, sluggishness in Boeing (NYSE:BA) was offset by a surge in Industrial-machinery manufacturer Gardner Denver (NYSE:GDI) after a Wall Street Journal report said the industrial company was in talks to merge with a division of Ingersoll-Rand.
The deal could be announced as early as next week, the Journal reported.
But Ingersoll’s climate segment, which includes its heating, ventilation and air- and temperature-controlled transport businesses, would not be part of the deal, The Journal said. The business represents about 20% of Ingersoll's annual sales and EBIT. The HVAC industry is going through consolidation, RBC said. This deal would accelerate the move.
Gardner Denver (NYSE:GDI) ended the day up 15.8%, and Ingersoll-Rand (NYSE:IR) rose 6.5%.
Energy stocks ended the day flat as oil prices stumbled to small gains following President Trump's renewed pressure on OPEC to raise production and keep a ceiling on prices.
Top S&P 500 Gainers and Losers Today:
Ingersoll-Rand (NYSE:IR), Archer-Daniels-Midland (NYSE:ADM) and Mattel (NASDAQ:MAT) were among the top S&P 500 gainers for the session.
CH Robinson Worldwide (NASDAQ:CHRW), Coty (NYSE:COTY) and Weyerhaeuser (NYSE:WY) were among the worst S&P 500 performers of the session.