The stock market held its solid gains into the close Monday, ending a bullish session with more positive signs and more leading stocks above buy points.
The Nasdaq composite led with a 1.7% increase that gave the composite some breathing room above the 50-day moving average. The index also topped the March highs.
Two of the Nasdaq’s largest components rose to new highs as Alphabet (GOOGL) and Facebook (FB) broke out of bases. Google parent Alphabet — which won a Supreme Court ruling in a copyright case against Oracle (ORCL) — topped the 2,145.24 buy point. Facebook closed above the 304.77 buy point of a six-month pattern, although 299.81 also was an acceptable entry.
U.S. Stock Market Today Overview
Last Update: 4:18 PM ET 4/5/2021
Semiconductors continued to provide the Nasdaq and the technology sector with some fuel. VanEck Vectors Semiconductor ETF (SMH) is near new highs. Components such as Micron Technology (MU), Lam Research (LRCX), ASML (ASML) and KLA (KLAC) rose to new highs last week.
Stock Market Today
The S&P 500 added 1.4% and the Dow Jones Industrial Average 1.1% as both indexes made record highs. But small caps took the day off, as the Russell 2000 index lagged with an increase of less than 0.4%.
Volume fell on the Nasdaq and NYSE, according to preliminary data. That put a damper on Monday’s rally.
Transportation stocks also led. The Dow transports rose 1% to new highs and extended a two-month rally. Airlines were the best industry group in the sector, with an increase of about 2%. Most of the 21 stocks in the group are within 10% of new high, but several foreign airlines are deeper in corrections.
Airlines were part of a buying impulse in the reopening economy. The lodging group rose 2.4% and was also among the day’s top 15 (of 197) industry groups.
Innovator IBD 50 ETF (FFTY) rose 0.9% and remained below the 50-day moving average.
Oil Prices Fall
The energy sector was broadly lower. The price of U.S. crude oil slid more than 4% to $58.75 a barrel. After two weeks holding around the 50-day line, U.S. crude closed below that level Monday.
Stocks opened higher Monday, the first chance investors got to trade following Friday’s bullish jobs report. The U.S. stock market was closed for the Good Friday holiday.
U.S. employers added 916,000 jobs in March while the unemployment rate eased to 6%. Expanding coronavirus vaccinations, and the lifting of Covid restrictions in Texas and other states boosted hiring. Also, the U.S. service sector PMI rebounded in March from February’s drop, rising the most since last June to a record high, according to BMO Capital Markets Economic Research.
The good news for the U.S. economy overshadowed Treasury Secretary Janet Yellen, who said the U.S. and G-20 nations are considering a global corporate tax. It is part of other taxes the administration is considering to help pay at least partly for a massive $2.2 trillion spending program.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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