Energy, funding help Wall Street recover from grueling week; more than 270 points

But gains in the Nasdaq were held back by major technology stocks as investors turned to sectors most likely to benefit from the economic boom this year.

Still, Apple Inc. was the biggest boost for the tech-heavy index, rising 0.6% following a mixed court ruling in Epic Games’ antitrust case against the iPhone maker, plunging nearly $90 billion from its market value on Friday. Of.

The S&P energy sector was the best performer among its peers, up 3.3%, as oil prices hit a one-week high on US supply concerns. Financial stocks jumped 1%.

Last week, Wall Street’s indexes lost between 1.6% and 2.2% as August producer prices rose and a drop in jobless claims sparked fears that the Federal Reserve may launch stimulus as soon as this year. .

August consumer price data, which is due out on Tuesday, is also likely to be a key signal to the Federal Reserve’s tough policy decision. A Reuters poll expects readings to remain stable through July.

“There are some inflation figures coming out this week and the market is looking to next week’s Fed meeting with just the jobs report to get a hint of color,” said Thomas Hayes, managing member of Great Hill Capital in New York.

“The hopes are now that the September meeting will be irrelevant, in that they will punt by November on any concrete plans for the taper.”

Also on the radar is the Biden government’s corporate tax hike plan, which could result in an increase in the corporate tax rate from 21% to 26.5%.

Analysts at Goldman Sachs predicted that a 25% increase in the US domestic corporate tax rate and the passage of nearly half of the proposed increase in tax rates on foreign income would reduce S&P 500 earnings by 5% in 2022.

Investors will also be looking at retail sales data later this week to see how the recent rise in COVID-19 cases has affected consumer spending.

At 09:51 am, the Dow Jones Industrial Average rose 271.31 points, or 0.78%, to 34,879.03, the S&P 500 rose 21.74 points, or 0.49%, to 4,480.32, and the Nasdaq Composite rose 11.51 points, or 0.08%, to 15,127.01. .

The S&P 500 has put on a seven-month winning streak this year while buying in economically sensitive sectors such as energy, financials and industry, the recent spike in the delta’s COVID-19 variant infections raised hopes of an economic recovery. has reduced.

Market participants expect a major correction in the stocks by the end of the year after a strong bull run.

Biotechnology firm Regenxbio Inc. grew nearly 30% after partnering with peer AbbVie to develop and sell a gene therapy candidate to treat chronic retinal diseases.

US-listed Chinese stocks, including Alibaba Group Holding, fell after China outlined new rules for major technology firms in the mainland.

Advancing issues declined by a 2.2-to-1 ratio on the NYSE, while the number of issues declined by a nearly 1.2-to-1 ratio on the Nasdaq.

The S&P 500 recorded 8 new 52-week highs and no new lows, while the Nasdaq recorded 35 new highs and 43 new lows.