Source: AP Photo/Richard Drew
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  • Both the S&P 500 and the Dow Jones Industrial Average closed at record highs on Monday as investors flagged further signs of an economic recovery in the United States
  • One of the most prominent indicators was news from Delta Air Lines, Southwest Airlines and JetBlue Airways that leisure bookings were on the rise
  • All up, nine of the 11 major S&P sector indexes rose, led by utilities and real estate, each of which were up more than one per cent
  • The strong performance was driven by continued vaccinations programs and congressional approval of a US$1.9 trillion (roughly A$2.45 trillion) economic stimulus bill
  • The Dow closed up 0.53 per cent yesterday and the S&P 500 gained 0.65 per cent

Both the S&P 500 and the Dow Jones Industrial Average closed at record highs on Monday as investors flagged further signs of an economic recovery in the United States.

One of the most prominent indicators was news from Delta Air Lines, Southwest Airlines and JetBlue Airways that leisure bookings were on the rise. As a result, the S&P 1500 airlines index jumped more than four per cent while other travel-related stocks, including Carnival Corp, Wynn Resorts and MGM Resorts, jumped between two and five per cent.

All up, nine of the 11 major S&P sector indexes rose, led by utilities and real estate, each of which were up more than one per cent.

Monday’s performance was the Dow’s sixth straight record close, thanks to a recent surge brought on by mass vaccination programs — which recently passed 100 million doses in the U.S. — and congressional approval of a US$1.9 trillion (roughly A$2.45 trillion) economic stimulus bill.

The perceived recovery has accelerated demand for stocks expected to recover with a re-opening economy, such as banks, energy and materials companies.

“With the vaccine positive news and the stimulus, we think there will continue to be a fair amount of rotation out of the stay-at-home stocks,” said Greg Bassuk, chief executive of AXS Investments.

“We are bullish on financial services and energy coming out of the pandemic.”

Volume on U.S. exchanges yesterday hit just 12.5 billion shares, compared to an average of 14.5 billion over the last 20 trading days.

Notably, Tesla share rose two per cent after the electric car maker dubbed its chief executive Elon Musk “Technoking of Tesla” in a formal regulatory filing.

Meanwhile, shares in Indianapolis-based pharmaceutical firm Eli Lilly and Co slumped more than nine per cent after a mid-stage trial testing its experimental Alzheimer’s drug led to “mixed” results, reducing the chances for the drug’s accelerated approval.

The Dow closed up 0.53 per cent yesterday, and the S&P 500 gained 0.65 per cent.

So far this year, the S&P 500 has gained almost six per cent while the Dow has climbed nearly eight per cent.

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