Day Traders Diary
The major averages rose sharply on Monday as tech shares outperformed while investors monitored stimulus negotiations in Washington. The Dow Jones Industrial Average rose 3250 points, or 0.8% to 28,837. The S&P 500 gained 1.6% while the Nasdaq Composite advanced 2.5%.
Apple jumped 6.2% as investors looked ahead to a key event for the company. On Tuesday, Apple is expected to unveil its first 5G iPhone. History shows Apple shares usually outperform the broader market after an iPhone launch.
Facebook and Amazon advanced 4.8% and 5.2%, respectively. Alphabet popped 3.9% and Microsoft gained 3.1%.
The iShares Russell 1000 Growth ETF (IWF) rallied 2.5% and outperformed its value counterpart, the iShares Russell 1000 Value ETF (IWD). The latter rose just 1%.
Monday's rally came even as chances for another round of stimulus before the election appeared to dim over the weekend. Both House Speaker Nancy Pelosi, D-Calif., and Senate Republicans pushed back on a $1.8 trillion offer from the White House.
In a letter to colleagues, Pelosi highlighted what she said were insufficient offers on healthcare issues.
Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows called for a separate vote on the Paycheck Protection Program in their own letter to Congress on Sunday.
With the U.S. Treasury market closed for Columbus Day, commentary mainly focused on the bullish price action in equities. Consequently, it's reasonable to believe that a fear of missing out on further gains was another factor that fueled the positive momentum in the market. The S&P 500 closed within 1.5% of its all-time high.
WTI crude futures fell 3.1%, or $1.26, to $39.34/bbl. The U.S. Dollar Index finished flat at 93.05.
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