U.S. stocks started the week on an upbeat note on Monday, continuing Friday’s payrolls-fueled rally as traders shrugged off global trade tensions.
What are markets doing?
The S&P 500 SPX, +0.34% rose 14 points, or 0.5%, to 2,749, while the Dow Jones Industrial Average DJIA, +0.79% advanced 214 points, or 0.9%, to 24,849. The Nasdaq Composite COMP, +0.31% rose 33 points, or 0.5%, to 7,587.
The gains come on the heels of a strong session on Friday when the Dow finished 0.9% higher, the Nasdaq Composite Index rose 1.5% and the S&P 500 booked a 1.1% gain.
What is driving the market?
Investors continued to cheer a round of solid U.S. jobs data out on Friday, which showed the world’s largest economy in better economic health than expected. That helped spur a move back into riskier assets such as stocks, after political upheaval in Italy earlier last week sparked a flight into havens such as bonds.
The optimism over the American data also helped overshadow lingering concerns over global trade on Monday. A round of trade talks between the U.S. and China broke down over the weekend with no agreement, indicating a full-on trade war between the world’s two largest economies could be imminent.
Meanwhile, finance ministers from Canada, France, Germany, Italy, Japan and the U.K. at a G-7 meeting on Saturday issued a rare rebuke to the U.S., expressing their “unanimous concern and disappointment” about President Donald Trump’s decision to place tariffs on metals imports from his major allies.
Tariffs and trade are also likely to feature highly on the agenda when leaders of the G-7 nations — including the U.S. — hold talks in Canada on Friday and Saturday.
What are strategists saying?
David Kelly, chief global strategist