Nasdaq Hits Record Close as Wall Street Rally Continues

Stocks finish higher Monday, kicking off the new trading week with sizable gains.
Author:
Publish date:

Stocks finished sharply higher Monday, getting a lift from a surge in Chinese markets amid improving bullish sentiment.

The Dow Jones Industrial Average finished up 459 points, or 1.78%, to 26,287, and the S&P 500 gained 1.59% to 3,179.

The Nasdaq Composite rose 2.21% to a record close of 10,433, following the three-day Independence Day weekend. 

The Nasdaq also reached an intraday high Monday and the S&P 500 saw its fifth consecutive day of gains.

Retail and tech giant Amazon.com  (AMZN) - Get Report crossed $3,000 a share and traded at an all-time high, closing at $3,057.04. 

Entertainment-streaming company Netflix  (NFLX) - Get Report also set a record, closing at $493.81.

The Dow was coming off a holiday-shortened week that saw it rise 3.3%. The S&P 500 gained 4% last week and the Nasdaq rose 4.6% following surprisingly strong U.S. jobs data despite record increases in coronavirus infections.

The Shanghai Composite Index closed Monday with a gain of 5.7%, the biggest jump in five years.

China's state media said fostering a “healthy” bull market after the coronavirus pandemic was now more important to the economy than ever, according to a report from Bloomberg.

However, a surge in new cases of the coronavirus in states such as Florida, Texas and California and the possibility of renewed lockdowns and reduce consumer spending prompted Goldman Sachs to lower its 2020 growth forecast for the United States.

Goldman's chief economist, Jan Hatzius, wrote in a note over the weekend that he expected the U.S. economy to contract 4.6% in 2020 vs. a previous outlook that called for a drop of 4.2%.

“The healthy rebound in consumer services spending seen since mid-April now appears likely to stall in July and August as authorities impose further restrictions to contain virus spread,” Hatzius wrote.

Service-sector activity in the U.S. was strong in June as the Institute for Supply Management's non-manufacturing index came in at 57.1, easily topping economists' estimates.

The number of confirmed global cases of the coronavirus has risen to 11,495,412, according to the Johns Hopkins University, and deaths increased to 535,185.

The U.S. has 2,911,888 cases of the coronavirus, the most in the world, according to Johns Hopkins. Deaths in the U.S. have risen to 130,090, also the most in the world.

Shares of Uber Technologies  (UBER) - Get Report rallied after the ride-hailing giant agreed to acquire food delivery service Postmates for $2.65 billion in stock.

Warren Buffett's Berkshire Hathaway  (BRK.A) - Get Report agreed to buy Dominion Energy's  (D) - Get Report natural gas transmission and storage assets for $4 billion for the conglomerate's biggest acquisition in more than four years.

With debt included, the transaction amounted to about $10 billion.