Stocks extend rally with technology, energy leading the way.
U.S. stocks advanced Tuesday, extending yesterday’s rally after technology and energy companies outperformed the broader market.
The large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.4% to 2,887.89, with most major sectors reporting gains. Energy stocks were the best performers, rising more than 1% as a sector. Information technology also put up firm gains with software and hardware companies leading the advance.
A strong performance in technology lifted the Nasdaq Composite Index (NYSEARCA:QQQ) to higher ground. The tech-driven average gained 0.6% to close at 7,972.47. The Nasdaq was the worst performer last week, falling more than 2%.
Meanwhile, the Dow Jones Industrial Average (NYSEARCA:DIA) climbed 113.99 points, or 0.4%, to 25,971.06.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) continued lower on Tuesday, as calm returned to Wall Street. The so-called “fear index” declined 6% to 13.31 on a scale of 1-100 where 20 represents the historic average. Vol surged to two-month highs last week amid a post-Labor Day downtrend in stocks.
In economic data, U.S. wholesale inventories rose 0.6% last month, the Department of Commerce reported Tuesday. Data on consumer inflation, retail sales and industrial production are all due this week.
The Final Word: September is a volatile month for stocks, but the recent string of gains suggests there is room for optimism. Attention next week shifts back to monetary policy as the Federal Reserve prepares to raise interest rates for the third time this year.