Stocks rise sharply with Nasdaq Composite Index hitting all-time high.
U.S. stocks advanced Monday, with the Nasdaq Composite Index (NYSEARCA:QQQ) touching all-time highs on domestic growth optimism tied to Friday’s better than expected jobs report.
The technology-heavy index gained 0.7% to close at 7,606.46, its third advance in four days. The Nasdaq posted oversized gains last month as tech shares rallied.
The broader S&P 500 Index (NYSEARCA:SPY) jumped 0.5% to close at 2,746.87. Seven of 11 primary sectors finished in positive territory, led by consumer discretionary and information technology shares.
Dow industrials (NYSEARCA:DIA) added 178.38 points, or 0.7%, to 24,813.69.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined more than 5% on Monday to settle at 12.72. The so-called “fear index” has been trekking lower since April.
Risk appetite remained elevated Monday following a much better than expected nonfarm payrolls report showing the creation of 223,000 jobs for May. The Labor Department also said the jobless rate fell unexpectedly to 3.8%, its lowest in 18 years.
In commodities, oil prices continued lower on Monday as investors continued to expect a rise in production levels following this month’s OPEC meeting. U.S. West Texas Intermediate (WTI) futures fell 98 cents, or 1.5%, to $64.83 a barrel. ICE Brent futures fell $1.47, or 1.9%, to $75.32 a barrel.
The Final Word: Domestic growth optimism is fueling a resurgence on Wall Street, though the exuberance will likely be contained by risks tied to rising interest rates. The Federal Reserve is widely expected to raise interest rates next week as it unveils a revised growth outlook for inflation, economic growth and employment.