Investing.com– The S&P 500 closed higher Monday, lifted by technology as stocks got the second half of the year off to a strong start ahead of a crucial monthly jobs report due later this week.
At 4:00 p.m. ET (2000 GMT), stock indexes were up 50 points, or 0.1 percent, 0.2 percent higher and 0.8 percent higher. The major indexes started the new week, shortened by the Independence Day holiday on Thursday, on a positive note, adding to gains posted in the previous quarter.
In the second quarter, the and gained 3.9% and 8.3% respectively, while the lost 1.7%.
Payroll, Powell in the spotlight
A series of labor market updates, including new clues on monetary policy, are expected this week ahead of Friday’s June data.
The monthly employment report should provide a better picture of the labor market, the resilience of which has also been a key point of contention for the Fed in cutting rates.
Ahead of the release of nonfarm payrolls data, the Federal Reserve is set to release the outcome of its June policy meeting, with many eager for fresh clues on the central bank’s monetary policy outlook after the Fed signaled it now expects just one cut this year, down from a previous estimate of three cuts.
Talks with the Fed are also on the agenda, with an appearance scheduled at the European Central Bank’s annual forum in Portugal on Tuesday, but the Fed chief is not expected to offer any new outlook on monetary policy.
“Powell will likely continue to emphasize that while the latest data is a step in the right direction, Fed officials will need to see several more positive numbers before they gain enough confidence to begin cutting rates,” Deutsche Bank said in a recent note.
On the production front, data showed that U.S. manufacturing activity unexpectedly fell in June, with the index reading 48.5, below estimates of 49.2. An index below 50 indicates a contraction.
Boeing Agrees to Purchase Spirit Aerosystems
Boeing (NYSE:) shares rose nearly 3% after the planemaker agreed to buy Spirit Aerosystems (NYSE:), up 3.4%, for $4.7 billion, ending a long-running lawsuit complicated by contracts Spirit had with Boeing’s main rival, Airbus (EPA:).
Nvidia (NASDAQ:) stock pared some intraday losses to trade up nearly 1% after Morgan Stanley said it still sees upside potential, raising its price target on the semiconductor, calling it “the most compelling narrative in the AI semiconductor space.”
Chewy (NYSE:) shares fell 6% after Keith Gill, the stock market influencer known as “Roaring Kitty,” revealed a 6.6% stake in the pet products retailer, while GameStop (NYSE:) shares fell 4% after Gill was charged with securities fraud in a class-action lawsuit involving the video game retailer.
Tesla surges in Q2 deliveries report; Nio rebounds as deliveries nearly double in June
Tesla Inc (NASDAQ:) jumped 6% just ahead of its second-quarter delivery figures, due Tuesday. Second-quarter deliveries are expected to reflect weaker demand for electric vehicles seen in the first half of the year, but the electric vehicle maker “enjoyed a ‘mini-rebound’ in the second quarter that should help Tesla get closer to the exchange’s estimate of 435,000 units,” Wedbush said in a recent note.
Elsewhere in the electric vehicle sector, Nio Inc Class A ADR (NYSE:) rose 6% after reporting that electric vehicle deliveries totaled 21,209 last month, nearly double the same period a year ago.
(Peter Nurse and Ambar Warrick contributed to this article.)
