U.S. Stocks started the second quarter with a general feeling of optimism on Monday. The S&P 500 climbed to a new 4-year high due to positive manufacturing data from the United States and China showing economic growth. The U.S. Institute for Supply Management index rose to 53.4, which exceeded previous forecasts. Additionally, China’s Purchasing Manger index reached the highest point is has been in 11 months.
Many were concerned that the first quarter data were strong only because of the mild winter. HOwever, growth has been even stronger than expected.
This data aided in lifting stocks relating to energy and materials stocks such as crude oil. Commodity Prices also climbed.
The Dow Jones finished at 13,264.49 points which was a rise in .40 percent. The S&P 500 rose to 1418.90, or 0.74 percent. The Nasdaq Composite Index finished at 3,119.70 points and rose 0.91 percent.
Monday was the highest close for the S&P 500 since May 2008. The Dow Jones has not matched the same level since December of 2007. The Nasdaq also showed great results, finishing at a high that hasn’t been seen since 2000.
Apple lifted the rest of the Nasdaq by rising by 3.2 percent to a price of $618.63. Home Depot on the other hand, hindered the Dow’s growth due to a fall of 0.6 percent to $49.99.
Many investor are playing catch up due to this optimistic financial data from the first quarter. in addition to this, markets will be closed on Friday due to the Good Friday holiday. This means that most catch up will be done earlier in the week. However, there will be some key economic indicators that will be released this week that may keep traders hesitant. One such factor will be the payrolls report release by the U.S. government on Friday.
Reports on the Eurozone’s manufacturing sector showed disappointing results, displaying a reduction for the eighth straight month. This may have an impact on the outlook of investors this week.
Overall it was an optimistic day. Around 72 percent of the stocks on the NYSE closed positive and two thirds of the stocks on the Nasdaq closed positive.