Dow Jones Industrial Average rose 26 points
The Dow Jones Industrial Average rose 26.07 points, or 0.11%, to 23,749.76, while the S&P 500 rose 0.42 to 2,842.74. The Nasdaq Composite posted a 1.23% gain to 105.77. Investors weighed the reopening of the economy along with brewing tensions between China and the U.S.
Big tech companies lift the broad market
Gains in popular technology companies provided the broader market with some support. Shares of Netflix climbed 3.1%, while Amazon rose 1.31% and Microsoft rose 2.45%. Apple and Facebook both climbed nearly 1.5%.
Amazon and Netflix were among the first companies in the S&P 500 that fully made back the losses from the coronavirus sell-off as they saw a surge in demand amid lockdowns.
Airlines register big losses
Airline shares were among the biggest losers in the S&P 500, with Delta, United, American all dropping more than 5%. The declines came after Warren Buffett said over the weekend his Berkshire Hathaway sold all of its airline holdings because of the coronavirus outbreak. Plane maker Boeing fell 1.43%.
“The world has changed for the airlines. And I don’t know how it’s changed and I hope it corrects itself in a reasonably prompt way,” Buffett said Saturday from Berkshire’s first-ever virtual shareholder’s meeting.
Berkshire had more than $4 billion invested across United, American, Southwest, and Delta Airlines before the sale. Monday’s drop pushed American, United and Delta’s 2020 losses to more than 60%, while Southwest has lost half of its value this year.
What happens next?
Investors will digest a slew of economic data including reports on the U.S. trade deficit, Markit services PMI and ISM nonmanufacturing PMI.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
The momentum in the biggest U.S. technology shares supported the broader market.