(Reuters) – The S&P 500 ended higher on Monday, helped by Amazon.com shares and the energy sector, as Treasury yields increased further and investors looked to economic data and Federal Reserve policymakers’ remarks later in the week for clarity on the path for interest rates. Investors are grappling with the rise in benchmark Treasury yields […]
S&P 500 ends higher as investors eye rate outlook
(Reuters) – The S&P 500 ended higher on Monday, helped by Amazon.com shares and the energy sector, as Treasury yields increased further and investors looked to economic data and Federal Reserve policymakers’ remarks later in the week for clarity on the path for interest rates.
Investors are grappling with the rise in benchmark Treasury yields to 16-year highs after the Fed gave a hawkish longer-term rate outlook. The S&P 500 last week posted its biggest weekly drop since March.
There is a “tug of war between investors seemingly getting more concerned about ‘higher for longer’ … and bulls wondering maybe we have seen the correction and we can start to build from these levels higher,” said Chuck Carlson, chief executive officer at Horizon Investment Services.
According to preliminary data, the S&P 500 gained 17.92 points, or 0.41%, to end at 4,337.98 points, while the Nasdaq Composite gained 59.86 points, or 0.45%, to 13,271.66. The Dow Jones Industrial Average rose 39.81 points, or 0.12%, to 34,003.65.
Among S&P 500 sectors, energy led the way. The defensive consumer staples sector fell.
With the end of the third quarter drawing near, investors said market moves may be relatively muted until companies report quarterly results in the coming weeks.
“There is less urgency to aggressively buy pullbacks in a higher-for-longer world and that is what the market is going to have to deal with over the coming months,” said Angelo Kourkafas, senior investment strategist at Edward Jones.
Investors through the week will be monitoring data including on durable goods and the personal consumption expenditures price index for August, and second-quarter Gross Domestic Product, as well as remarks by Fed policymakers, including Chair Jerome Powell.
Chicago Fed President Austan Goolsbee said in an interview with CNBC on Monday that inflation staying above the Fed’s 2% target remains a greater risk than tight central bank policy slowing the economy more than needed.
In company news, Amazon.com shares rose after the e-commerce giant said it will invest up to $4 billion in startup Anthropic to compete with growing cloud rivals in artificial intelligence.
(Reporting by Lewis Krauskopf in New York, Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur, Maju Samuel and Richard Chang)