Bryan R. Smith/AFP/Getty Images
- US stocks climbed slightly on Monday as investors weighed fresh capital injections from the People’s Bank of China.
- The central bank added 700 billion yuan ($101 billion) to China’s financial system on Monday, signaling the adoption of a more accommodative monetary policy strategy.
- The S&P 500 crept back near its February 19 peak after failing to reach new records throughout last week.
- Oil slipped amid rebounding COVID infection rates in Europe. West Texas Intermediate crude fell as much as 0.5%, to $41.80 per barrel.
- Watch major indexes update live here.
US stocks gained on Monday as investors mulled new stimulus measures from China’s central bank and continued virus risks in the US.
The People’s Bank of China injected 700 billion yuan ($101 billion) into the country’s financial system on Monday, establishing a more accommodative monetary policy stance from China’s government. The injection, made through China’s medium-term lending facility, could prelude interest rate cuts or other, more potent easing measures.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Monday:
- S&P 500: 3,386.42, up 0.4%
- Dow Jones industrial average: 27,944.58, up 0.1% (14 points)
- Nasdaq composite: 11,099.32, up 0.7%
Read more: Inside Eagle Investors, the 20,000-member online community run by 2 Indiana University students that’s helping spearhead the Gen Z day-trading revolution
The S&P 500 crept closer to retaking its February 19 peak after failing to break through the threshold last week. Muted trading activity on Friday saw major indexes close mixed amid weaker-than-expected retail sales data.
Investors continued to mull how a lack of fiscal stimulus could halt the US recovery. Senators went on recess on Friday, punting stimulus talks into September unless a majority of lawmakers decide to reconvene ahead of schedule. The break arrives as economists warn the stimulus deadlock could plunge the country into a longer-than-necessary recession.
“There has been a solid V-shaped rebound so far and the US economy has already made up a lot of lost ground,” Michael Zezas, managing director at Morgan Stanley, said in a note. “However, prolonged delays in stimulus could weigh on household consumption and prompt state and local austerity.”
Read more: Charles Schwab’s stock-picking chief told us why a COVID-19 vaccine would trigger a mass exit from tech stocks – and pinpoints 3 companies that would benefit instead
Barrick Gold surged in early trading after Warren Buffett bought a stake in the mining company. Berkshire Hathaway took in 21 million Barrick shares for roughly $564 million in the last quarter, according to a Securities and Exchange Commission filing published Friday.
Tesla bounced following a new price-target boost from Wedbush analyst Dan Ives. The analyst sees Tesla shares leaping 15% from Friday’s closing level on surging China demand and technology reveals slated for the company’s September 22 Battery Day event.
Oil prices dipped as Italy, France, and Spain warned of rising virus indicators. West Texas Intermediate crude declined as much as 0.5%, to $41.80 per barrel. Brent crude, oil’s international standard, fell 0.7%, to $44.53, at intraday lows.
Now read more markets coverage from Markets Insider and Business Insider:
Bruce Fraser outperformed the S&P 500 by nearly 286% as a hedge fund manager before switching to real-estate investing. He details the strategy he used to amass more than 1,600 multifamily units.
A Wall Street chief strategist says consider buying dirt-cheap ‘mighty microcap’ stocks, which have done even better than their large-cap peers since the coronavirus crash
Goldman Sachs lays out 4 themes from 2nd-quarter earnings set to shape the economy’s future
Source: Read Full Article