Business
Tech powers US stocks higher, crude slumps on China weakness
Megacap tech-adjacent growth stocks lifted the Nasdaq
New York (Reuters): U.S. stocks were led higher by tech while crude prices dipped on Monday as investors, amid light Columbus Day trading, looked to promised Chinese stimulus and girded themselves for a string of high-profile corporate earnings.
Megacap tech-adjacent growth stocks lifted the Nasdaq and the S&P 500 sharply higher, setting the latter up for a fresh record closing high, while the blue-chip Dow was only barely positive, hovering near Friday's all-time closing high.
"We have some good momentum behind stocks in general, major indices hitting all time highs," Sam Stovall, chief investment strategist of CFRA Research in New York, said.
Oil prices dipped and the dollar was flat as dour news from China stoked fears of softening global demand.
On Saturday Beijing pledged to "significantly increase" debt in its attempt to breathe life into the world's second-largest economy, but disappointed investors with its lack of detail.
This was followed on Monday by a report showing a sharp deceleration in Chinese export growth which missed expectations by a wide margin, underscoring the need for robust stimulus.
"China is having economic difficulties," Stovall added. "Oil prices are another indication of lack of confidence that China will be able to pull itself up by its own boot straps, primarily because the stimulus details are so sketchy."