Investors drove the major U.S. stock indexes to record closing highs Monday. They scooped up economically sensitive energy, materials and financial stocks on optimism that fiscal stimulus prospects and vaccine deployment would give a boost to the pace of the economic recovery.
Pence Wealth Management Chief Investment Officer, Dryden Pence:
“You have a lot of people that have excess cash around in the beginning to fuel this and the expectations of further stimulus is moving cash and liquidity into the market.”
The Dow and S&P 500 rose three-quarters percent, extending their winning streaks to a sixth session. The Nasdaq rose nearly one percent.
Oil prices rose to their highest level in over a year, fueling stocks like Chevron and ExxonMobil.
Tesla’s $1.5 billion investment in bitcoin turbocharged the price of the digital currency. That in turn pushed up shares of cryptocurrency miners Riot Blockchain and Marathon Patent Group roughly 40%.
Meanwhile, the fourth-quarter reporting season has passed the halfway mark and most S&P 500 companies so far have beaten consensus estimates, according to Refinitiv.
Walt Disney, Cisco Systems, and General Motors advanced Monday ahead of their earnings reports this week.