US: Stocks extend rally with fresh advances
WALL Street stocks finished solidly higher on Monday, extending last week’s positive trend as markets await earnings from US retailers and central bank commentary.
This week’s results from big-box chains Target, Lowe’s and TJX will offer additional clues about the state of the US economy following reassuring retail sales data last week.
“Today seems to be an extension of the positive trend” from last week, said Art Hogan, chief market strategist at B. Riley Wealth, who noted a chance that low trading volumes amid the “dog days” of summer holidays could lead to outsized market moves.
The Dow Jones Industrial Average finished up 0.6 per cent at 40,896.53.
The broad-based S&P 500 gained 1.0 per cent to 5,608.25, while the tech-rich Nasdaq Composite Index jumped 1.4 per cent to 17,876.77.
US stocks rallied last week following encouraging US economic data that offered reassurances after recession fears buffeted markets earlier in August.
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Among individual stocks, chip company AMD piled on 4.5 per cent after announcing a US$4.9 billion deal to acquire ZT Systems, which provides server solutions for cloud computing and artificial intelligence.
General Motors gained 1.0 per cent after confirming plans to trim its software and services workforce. The auto giant will cut more than 1,000 jobs, according to US media.
This week’s calendar includes the Democratic Party’s convention in Chicago, with Vice-President Kamala Harris slated to deliver a headline speech on Thursday.
On Friday, Federal Reserve Chair Jerome Powell is expected to deliver remarks at an annual central bank gathering in Jackson Hole, Wyoming. AFP
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