Small caps raced ahead Monday, while the major blue-chip indexes produced more mixed results, as investors continued to digest last week's jobs report and several other moving macroeconomic parts.
President Joe Biden on Friday rejected the GOP's most recent infrastructure package but was set to meet today with Republican Sen. Shelley Moore Capito, of West Virginia, to continue negotiations.
Also of note were comments from Treasury Secretary Janet Yellen, who said Biden's spending plans could lead to higher interest rates – but that such a result "would actually be a plus for society's point of view and the Fed's point of view," adding that both rates and inflation have been too low over the past decade.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Don't expect higher rates anytime soon, however; BlackRock Investment Institute strategists say the Federal Reserve "faces a very high bar to change its easy monetary policy stance."
The Dow Jones Industrial Average (-0.4% to 34,630) and S&P 500 (off marginally to 4,226) both declined modestly, while the Nasdaq Composite managed a 0.5% gain to 13,881. The tech-heavy index was helped by a massive 38.3% surge in Biogen (BIIB (opens in new tab)) shares, which came alive after the Food and Drug Administration approved the company's Alzheimer's treatment.
"We had upgraded BIIB on the potential for the regulatory saga around adu to create significant upside," says Canaccord Genuity analyst Sumant Kulkarni (Buy). "Some might take profits here, but we continue to like the stock as today's approval allows BIIB to play much more strategic offense vs. what was a largely defensive posture earlier forced by competition to core products such as Tecfidera, Spinraza, etc."
Other action in the stock market today:
- Eli Lilly (LLY (opens in new tab), +10.2%) surged to a record high today on a halo lift from BIIB. The Indianapolis-based pharmaceutical firm is developing its own drug to treat Alzheimer's disease.
- Tesla (TSLA (opens in new tab), +1.0%) has ended plans to produce the Plaid+ sedan – the priciest version of its Model S series. CEO Elon Musk broke the news via Twitter on Sunday, tweeting "Plaid+ is canceled. No need, as Plaid is just so good."
- U.S. crude oil futures slipped 0.6% to end at $69.23 per barrel.
- Gold futures gave back 0.4% to settle at $1,898.80 an ounce.
- The CBOE Volatility Index (VIX) edged 0.1% higher to 16.44.
- Bitcoin prices declined 3.3% from Friday to $35,679.55. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
Small-Cap Stocks Come Out on Top
As a group, small-cap stocks were Monday's biggest winner. The Russell 2000 gained 1.4% to 2,319, putting it within 2.0% of its March 15 closing high of 2,360.
"The Reddit favorites are back in vogue again today," says Michael Reinking, senior market strategist for the New York Stock Exchange, referring to so-called meme stocks such as AMC Entertainment (AMC (opens in new tab), +14.8%) and GameStop (GME (opens in new tab), +12.7%).
But they weren't alone. Cloud computing (opens in new tab), electric vehicles (opens in new tab) and online gambling (opens in new tab) were among Monday's more exciting pockets of strength.
More broadly, it was a productive day for "innovative growth stocks" – companies that are somehow breaking the mold in their respective industries. Analysts are particularly high on these 15 firms' long-term prospects, lauding not just their breakthrough technologies, but also adept management concerned with sustainable cash flows and returning capital to shareholders. Take a look at 15 innovators that stand out.
-
-
Delta-8 Restricted in Kentucky: This Week in Cannabis Investing
Kentucky lawmakers passed a bipartisan bill to regulate Delta-8 THC, a psychoactive cannabinoid.
-
Most Common Types of Car Insurance
The following are the most common types of car insurance, which can help you cover expenses in the case of an accident, including medical bills and repairs.
-
Stock Market Today: Stocks Close Higher in Volatile Session
The major indexes spent most of Thursday in rally mode, but selling pressure emerged in afternoon trading.
-
If You'd Put $1,000 Into Amazon Stock 20 Years Ago, Here's What You'd Have Today
Amazon AMZN stock has lost almost $900 billion in value since its all-time high, but bulls say it's only a matter of time before it reclaims its heights.
-
Stock Market Today: Stocks Sink After Latest Fed Rate Hike
The major indexes sold off sharply Wednesday even amid signs the Fed's rate-hike campaign could be nearing an end.
-
Stock Market Today: Markets Up Again as Bank, Energy Stocks Outperform
The major indexes closed higher for a second straight day ahead of tomorrow's highly anticipated Fed decision.
-
9 Best Green Energy Stocks to Buy Now
The future for renewable energy is bright, and these green energy stocks are poised to profit on the growing trend toward sustainability.
-
Stock Market Today: Stocks Rise Ahead of Fed
Bank headlines dominated another choppy day of trading on Wall Street.
-
Stock Market Today: Stocks Fall After First Republic Bank Suspends Dividend
The embattled lender's dividend cut was just the latest sign of instability in the banking industry.
-
Stock Market Today: Stocks Rally on Credit Suisse, First Republic Bank Rescue News
Reports that major U.S. banks would step in to help First Republic Bank helped stocks swing higher Thursday.
