US stock indices rose at the close of trading on Monday, with traders shaking off fears of economic turbulence and embracing hopes for brighter days as the pandemic ebbs.
High inflation readings, chaos in the cryptocurrency markets and supply chain challenges as major economies reopened have stymied equities in recent weeks, but concerns about their effects on business took a back seat as this week's trading got underway.
The benchmark Dow Jones Industrial Average closed 0.5 per cent higher at 34,393.98, while the broad-based S&P 500 gained 1.0 per cent to finish at 4,197.05.
The tech-rich Nasdaq Composite Index climbed 1.4 per cent to 13,661.17.
"It's a bull market," said Maris Ogg of Tower Bridge Advisors, crediting continued monetary stimulus from central banks as well as the return of normal life to the rise in indices.
Investors have in recent months shifted money towards cyclical industries seen to benefit from the economic reopening, a trend that hurt tech stocks.
But major tech companies gained from Monday's rally, with Facebook climbing 2.7 per cent, Apple rising 1.3 per cent and Google parent Alphabet gaining 2.9 per cent.
The announcement from major cruise lines that they would restart voyages from the US for passengers who have had Covid-19 vaccines benefited that ailing sector's equities.
Carnival Corp closed 2.7 per cent higher and Royal Caribbean won 3.7 per cent.
Wall Street is looking ahead to a busy week of economic news, including multiple appearances by a top Federal Reserve official as well as congressional testimony from Treasury Secretary Janet Yellen.
In economic data, traders will get updates on new home sales, consumer confidence, durable goods, and the latest readings on personal consumption expenditures, which will indicate the degree to which the economic rebound and Washington's spending policies are pushing up prices.
The "stock market loves three or four per cent inflation. It gives companies pricing power, which we haven't had for the past 10 years in what was ostensibly an inflationary environment," Ogg said.
"A little bit of inflation is good for corporate earnings."
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