Stocks finish mostly higher, with S&P 500, Nasdaq notching fresh records.
U.S. stocks finished mostly higher on Monday, with two of the three major indexing notching fresh record highs in a session marked by lower volatility.
The large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.2% to close at 2,747.71, its fifth consecutive record high. Eight of 11 sectors contributed to the rally, with utilities leading the advance. Energy stocks also rose as oil prices set fresh multi-year highs. Healthcare and financials were the only major laggards.
The technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) advanced 0.3% to a new record close of 7,157.39.
Meanwhile, the Dow Jones Industrial Average (NYSEARCA:DIA) slipped 0.1% to close at 25,283.00.
Implied volatility in U.S. stocks, as measured by the CBOE VIX (NYSEARCA:VXX), closed in single-digit territory on Monday. The so-called “fear index” rose 3.3% to close at 9.52, where it continues to trade at less than half the historic average. Last week, the Vol gauge came within half a point of record lows.
Equities are coming off their best week of gains in a year, setting the stage for another bull run through the winter. Attention is also shifting to infrastructure spending, with President Trump’s administration expected to present a blueprint on rebuilding America later this month. Infrastructure is expected to be a major topic at the Jan. 30 State of the Union address.
The Final Word: Investors are brimming with confidence thanks to favorable tax reform and signs of a deepening domestic recovery. Its unclear just how far the equities rally will continue before overvaluation risks creep back into the picture.