By Mark DeCambre and Joy Wiltermuth
U.S. stock indexes closed mostly higher, leaving the S&P 500 and the Nasdaq Composite with fresh intraday and all-time closing records, but the Dow Jones Industrial Average lost ground as shares of Boeing C o. /zigman2/quotes/208579720/composite BA -0.73% and Chevron Corp . /zigman2/quotes/205871374/composite CVX -4.44% slumped.
Facebook Inc. shares surged to a market cap above $1 trillion for the first time ever, after a federal court on Monday dismissed the Federal Trade Commission’s antitrust lawsuit that would have split up the social-networking giant.
How did stock benchmarks trade?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.08% fell 150.57 points, or 0.4%, closing at 34,283.27.
The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.25% added 9.91 points, or 0.2%, to end at a record 4,290.61, after touching an intraday record of 4,292.14.
The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.95% climbed 140.12 points, or 1%, finishing at a record 14,500.51, after setting its all-time intraday peak at 14,505.19.
On Friday , the Dow put in a weekly gain of 3.4%, its largest since the week ended March 12; the S&P 500 rose 2.7% for its sharpest weekly climb since Feb. 5, while the Nasdaq Composite Index gained 2.4% for its steepest weekly rise since April 9.
What drove the market?
The focus, in the last trading days of June, remained on quarter-end positioning, discussions surrounding infrastructure and the outlook for the economy’s reopening phase as market participants watch COVID variants.
“I think in the next couple of days, we could see a little bit more volatility,” said James Ragan, director of wealth management research at D.A. Davidson Companies.
“As institutional funds get situated for the second half, there could be a bit more trading than usual over the next couple of days,” he told MarketWatch, adding that inflation, the growth outlook and the direction of interest rates remain top of mind for investors.
“I think the outlook for the market has been fairly positive, but the bond market may be expressing some concern about the sustainability of growth in the second half of the year,” he said.
In Washington, hopes were high for progress on a bipartisan infrastructure bill that could deliver a fresh jolt to business activity in the U.S., while improving roads, bridges and tunnels, after President Joe Biden over the weekend walked back comment s that tied the $1 billion infrastructure bill to an antipoverty package.
But worries lingered about the persistence of growing pricing pressures in the economy’s recovery phase from COVID, with investors expected to shift their attention to data on the labor market. The June jobs report will be released on Friday.
The Federal Reserve has insisted that inflation likely will be a temporary phenomenon, but policy makers also have said improvements in the jobs market will form a key part of the decision making process around when to begin curtailing its program of monthly asset purchases and eventually raising its benchmark interest rate, which currently stand at a range between 0% and 0.25%.
A few Fed officials already said they are expecting to raise rates as soon as late 2022, while scaling back asset purchases, or quantitative easing, could commence by the beginning of next year.
Lindsey Bell, chief investment strategist at Ally Invest, expects more modest corporate earnings growth a blockbuster pace of year-over-year growth in the first and second quarters, in part, as COVID benefits fade.
“Wall Street estimates earnings growth could slow to an average of 17% in the second half of this year,” Bell wrote in emailed commentary, down from about 35% in the first quarter and forecasts of an 55% peak in the second quarter for S&P 500 companies. “While that is much lower than the first half of this year, it is much better than the average growth rate of 8.4% per quarter going back to 2002.”