NEW YORK: The S&P 500 ended little changed in a holiday-shortened session on Monday, kicking off the second half of the year on a subdued note, as gains in Tesla and bank shares were countered by weakness in the healthcare sector.
Tesla shares jumped as the electric vehicle maker said it delivered a record number of vehicles in the second quarter.
Shares of major banks, such as Wells Fargo and Goldman Sachs, gained after raising dividends as they sailed through the Federal Reserve’s annual health check.
“You have got a lot of people that are just not in the market today,” said Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. “Nobody is really placing any big bets on either side of the market right now.” According to preliminary data, the S&P 500 gained 4.75 points, or 0.11%, to end at 4,455.13 points, while the Nasdaq Composite gained 29.01 points, or 0.21%, to 13,816.93. The Dow Jones Industrial Average rose 7.02 points, or 0.02%, to 34,414.62.
The stock market closed at 1 p.m. ET on Monday, ahead of the July 4th Independence Day holiday on Tuesday.
A widely watched section of the US Treasury yield curve hit its deepest inversion since 1981, reflecting financial markets’ concerns about the economy.
US manufacturing slumped further in June, a survey showed, reaching levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic.
Stocks ended higher on Friday, closing out a strong first-half of the year for major equity indexes. The Nasdaq Composite posted its biggest first-half gain in 40 years, rising 31.7%.
Outsized gains for megacap stocks have led indexes this year, but recent signs have shown a broadening rally.
“You have a stronger market and the likelihood of a more sustained upside move when you have broader strength,” Carlson said.
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