US: S&P 500, Nasdaq end at records as rally resumes

[NEW YORK] The S&P 500 and Nasdaq finished at records Monday as markets monitored the coronavirus and awaited two days of congressional testimony from Federal Reserve Chief Jerome Powell.

The broad-based S&P 500 climbed 0.7 per cent to end at 3,352.09, while the tech-rich Nasdaq Composite Index gained 1.1 per cent to close at 9,628.39.

The Dow Jones Industrial Average gained 0.6 per cent to 29,276.82, about 100 points shy of a closing record of its own.

As the outbreak continues, Chinese President Xi Jinping donned a face mask while visiting medical workers and patients affected by the deadly coronavirus that has killed more than 900 people.

Although parts of China remain shut down, roads in Beijing and the financial hub of Shanghai had significantly more traffic Monday, while the southern city of Guangzhou said it would start to resume normal public transport.

Stocks spent most of last week in rally mode as investors largely shrugged off the coronavirus as unlikely to have a lasting negative impact on global growth.

"At least, we have an idea that the government has done a very good job at taking action and trying to contain it," said J.J. Kinahan, chief market strategist at TD Ameritrade.

"It may get worse, but we feel good about what we know right now."

Investors are looking ahead to key data releases on retail sales and consumer pricing, as well as two days of congressional testimony Powell starting Tuesday.

HP Inc gained 0.8 per cent as Xerox said it was raising its offer for the computer and printer maker to about US$36 billion.

The new offer from the imaging and copying giant is around 10 per cent higher than the bid launched last year and rejected by the HP board of directors. Xerox climbed 1.4 per cent.

Shopping mall chain Taubman Centers surged 53.2 per cent as it agreed to sell 80 per cent of the company to another mall chain, Simon Property Group, for US$3.6 billion. Simon advanced 1.5 per cent.

AFP