US Markets Close Higher As Tech, Cyclical Stocks Shine

All benchmark US indices closed higher on Monday, May 24, lifted by technology and cyclical stocks as investors kept their inflation worries aside to focus on opportunities from the reopening of the economy.

The S&P 500 gained 0.99% to 4197.05. The Dow Jones Industrial Average rose 0.54% to 34393.98. The NASDAQ Composite Index ticked up 1.41% to 13661.17. The small-cap Russell 2000 added 0.54% to 2227.34.

Investors pulled back in recent days amid rising consumer prices and concerns over labor shortage. Markets remained volatile, although there were signs of strong recovery of the US economy. 

Several big corporate announcements buoyed Monday's bullish sentiments.

Amazon stock was up 1.31% after the news of the e-commerce giant's plans to purchase the famed Hollywood studio MGM hit the markets. The deal value is estimated to be about US$9 billion. Both sides are currently ironing out the deal, according to market observers.

Nielsen Holdings PLC (NLSN) plans to invest a significant amount in a new TV rating platform, covering traditional and video streaming segments. The stock was up 0.99% at Monday's close.

Drugmaker Moderna has announced that it will jointly produce covid vaccines with Samsung's pharmaceutical division in South Korea. Both sides have signed an agreement in this regard. The Moderna stock closed 1.68% higher following the development.

Meanwhile, Apple and Epic Games prepared for their final argument in a court case. The latter has accused the iPhone maker of exercising an unfair monopoly over third-party app developers. Apple CEO Tim Cook defended the company policies over the issue in a hearing over the weekend.

Virgin Galactic Holdings Ltd. (SPCE) soared more than 27% at the close after Saturday's third test flight of its VSS Unity spacecraft. The test was conducted from Spaceport America in New Mexico.

Technology, consumer cyclicals, and real estate were among the top performers on the S&P 500. Twitter (TWTR) was up 4.79%, Tesla (TSLA) gained 4.4%, Google's parent company Alphabet (GOOG) surged 2.63%, while Facebook (FB) and Microsoft (MSFT) added 2.66% and 2.29%, respectively.

The energy segment also saw significant traction after oil prices rose more than US$1 per barrel. Cryptocurrencies gained in Monday's session, helping to pare some losses from last week's decline. The digital coins had pulled back after China's crypto ban on financial institutions.

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Top Gainers

Top performers on S&P 500 included MGM Resorts International (5.14%), Caesars Entertainment Inc (4.86%), Twitter Inc (4.79%), and Norwegian Cruise Line Holdings Ltd (4.70%). On NASDAQ, top performers were Scopus BioPharma Inc (71.98%), MMA Capital Holdings Inc (57.66%), Creative Realities Inc (47.33%), Petros Pharmaceuticals Inc (37.92%). On Dow Jones, Microsoft Corp. (2.29%), Salesforce.Com Inc. (1.98%), Cisco Systems Inc. (1.83%), and Intel Corp. (1.57%) were the leaders.

Top Losers

Top laggards on S&P 500 included Cabot Oil & Gas Corp. (-6.79%), Dollar General Corp. (-3.85%), Carmax Inc. (-2.40%), T Rowe Price Group Inc (-2.23%). On NASDAQ, NGM BioPharmaceuticals Inc (-11.57%), Meten Edtechx Education Group Ltd (-32.34%), EZGO Technologies Ltd (-17.22%), Onconova Therapeutics Inc (-17.01%). On Dow Jones, Amgen Inc (-1.30%), Home Depot Inc (-0.29%), Travelers Companies In. (-0.22%), Merck & Co Inc (-0.19%) were the laggards.

Volume Movers

Top volume movers were Ford Motor Co (19.52M), Apple Inc (15.98M), AT&T Inc (10.92M), General Electric Co (8.36M), Microsoft Corp (7.89M), Tesla Inc (7.33M), Cabot Oil & Gas Corp (7.24M), Castor Maritime Inc (16.26M), Apple Inc (15.94M), Sundial Growers Inc (11.70M), Microsoft Corp (7.88M), Obalon Therapeutics Inc (7.34M), Scopus Biopharma Inc (7.30M), Cisco Systems Inc (7.07M), Intel Corp (6.28M), Coca-Cola Co (3.64M), Verizon Communications Inc (3.49M)

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Futures & Commodities

Gold futures were up 0.26% to US$1,881.55 per ounce. Silver increased 1.40% to US$27.872 per ounce, while copper was up 1.16% to US$4.5330.

Brent oil futures marginally falls 0.03% to US$68.38 per barrel and WTI crude was up 3.84% to US$66.02.

Bond Market

The 30-year Treasury bond yields were down 1.31% to 2.303, while the 10-year bond yields decreased 1.68% to 1.605.

US Dollar Futures Index was slightly down 0.20% to US$89.825.