Stocks moved mostly higher during trading on Monday following the mixed performance seen last week. With the upward move on the day, the Dow and the S&P 500 both climbed to new record closing highs.
The major averages ended the session just off their best levels of the day. The Dow climbed 144.71 points or 0.7 percent to 21,528.99, the Nasdaq surged up 87.25 points or 1.4 percent to 6,239.01 and the S&P 500 advanced 20.31 points or 0.8 percent to 2,453.46.
The buying interest on Wall Street was partly in reaction to strength in the overseas markets, which benefited from political news out of Europe.
French President Emmanuel Macron’s party won a clear parliamentary majority in Sunday’s election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.
Additionally, Brexit negotiations with the EU have begun after Britain bowed to pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants.
Trading activity was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.
The economic calendar for the week remains relatively quiet, although traders are likely to keep an eye on reports on new and existing home sales and leading economic indicators.
Meanwhile, New York Federal Reserve President William Dudley predicted that inflation will gradually rise as a tight labor market leads to higher wages.
“Inflation is a little lower than what we would like, but we think that if the labor market continues to tighten, wages will gradually pick up and with that, inflation will gradually get back to 2 percent,” Dudley said.
The comments from Dudley came after the Fed’s widely expected to decision to raise interest rates by a quarter point last week.
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