The benchmark S&P 500 and the Dow industrials hit record highs on Monday as investors moved into defensive sectors and stocks recovered from losses earlier in the session, shaking off glum economic data out of China.
The Dow Jones Industrial Average rose 110.02 points, or 0.31%, to 35,625.4, the S&P 500 gained 11.71 points, or 0.26%, to 4,479.71 and the Nasdaq Composite dropped 29.14 points, or 0.2%, to 14,793.76.
A rebound in the U.S. economy including a stellar second-quarter corporate earnings season along with accommodative monetary policy has underpinned positive sentiment for equities. The S&P 500 has gained 100% since its March 2020 low.
Economically sensitive groups such as energy, materials and financials were weaker after China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations.
Investors are looking for signs about when the Federal Reserve will rein in its easy money policies, with minutes from the central bank’s latest meeting due on Wednesday. A resurgence in COVID-19 cases and the impact on the economy are keeping markets on edge, with investors watching earnings reports from major retailers due later in the week.
Investors were also digesting news from Afghanistan, where thousands of civilians desperate to flee the country thronged Kabul airport after the Taliban seized the capital.
But healthcare gained 1.1%, the best-performing S&P 500 sector. Utilities and consumer staples -- also generally regarded as defensive sectors -- further bolstered market gains.
The S&P 500 and the Dow both posted record high closes for their fifth straight sessions, even after the major indexes were initially well in the red.
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