S&P 500, Nasdaq post record highs as tech-related shares gain

By Caroline Valetkevitch

NEW YORK (Reuters) -The Nasdaq and S&P 500 scored record closing highs on Monday, boosted by tech-related shares following the market's strong November gains, as investors awaited this week's economic data including the key monthly jobs report on Friday.

The Dow finished lower on the day. Both the Dow and S&P 500 recorded on Friday their biggest monthly percentage gains in a year.

The technology, communication services and consumer discretionary sectors rose about 1% each on Monday, while the rest of the S&P 500 sectors were lower. Tesla (NASDAQ:TSLA ) shares advanced 3.5%, with Stifel raising its price target on the stock.

"We're seeing a market that's in a seasonably strong period just creep higher," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

"It's a tough time for people to bail out, but by the same token, I don't see an explosive finish to the year. There's just too much uncertainty to where we're headed. ... No one is quite sure what the plan is economically with the new administration."

Former U.S. President Donald Trump recaptured the White House in last month's election and his Republican Party swept both houses of Congress, boosting stocks in November.

The Dow Jones Industrial Average fell 128.65 points, or 0.29%, to 44,782.00. The S&P 500 rose 14.77 points, or 0.24%, to 6,047.15 and the Nasdaq Composite climbed 185.78 points, or 0.97%, to 19,403.95.

Strategists have cited Trump's potential plans for tax cuts and deregulation as a positive for stocks, but tariffs would be negative.

Investors also digested comments from Federal Reserve Governor Christopher Waller that he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive.

Investors have been expecting a quarter-point rate cut in December, but recent inflation data has raised worries that progress may have stalled.

The Fed began reducing rates in September by a half a point, following that with a quarter-point cut in November.

Earlier on Monday, the Institute for Supply Management reported improved U.S. manufacturing activity in November.

Aside from Friday's hotly anticipated employment report, investors this week also will see private sector job growth data, the ISM's services report and the Labor Department's weekly jobless claims.

Super Micro Computer (NASDAQ:SMCI ) surged 28.7% after the artificial intelligence server maker began searching for a new finance chief based on recommendations by a special committee formed to review its accounting practices.

Declining issues outnumbered advancers by a 1.08-to-1 ratio on the NYSE. There were 406 new highs and 64 new lows on the NYSE.



On the Nasdaq, 2,332 stocks rose and 2,060 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio.

Volume on U.S. exchanges totaled 13.64 billion shares, compared with the 14.74 billion full-session average over the last 20 trading days.

Source: Investing.com