© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 29, 2023. REUTERS/Brendan McDermid
By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian
(Reuters) – Wall Street’s main indexes ended with slim gains in a holiday-shortened session on Monday, helped by a surge in Tesla (NASDAQ:) and strength in bank shares as the second half of the year kicked off on a subdued note.
Tesla shares jumped 6.9% as the electric vehicle maker said it delivered a record number of vehicles in the second quarter.
Shares of major banks gained after the companies raised dividends as they sailed through the Federal Reserve’s annual health check. Wells Fargo (NYSE:) shares rose 1.7%, Citigroup (NYSE:) shares climbed 1.5%, while the banks index ended up 1.5%.
Trading volumes were lighter than average as the stock market closed at 1 p.m. ET ahead of the July 4th Independence Day holiday on Tuesday.
“You have got a lot of people that are just not in the market today,” said Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. “Nobody is really placing any big bets on either side of the market right now.”
The rose 10.87 points, or 0.03%, to 34,418.47; the S&P 500 gained 5.21 points, or 0.12%, at 4,455.59; and the added 28.85 points, or 0.21%, at 13,816.77.
While nine of the 11 S&P 500 sectors rose, healthcare fell the most, dropping 0.8%, while the heavyweight technology sector fell 0.3%.
Stocks ended higher on Friday, closing out a strong first-half of the year for major equity indexes. The Nasdaq Composite posted its biggest first-half gain in 40 years, rising 31.7%.
Outsized gains for megacap stocks have led indexes this year, but recent signs have shown a broadening rally.
“You have a stronger market and the likelihood of a more sustained upside move when you have broader strength,” Carlson said.
A widely watched section of the U.S. Treasury yield curve hit its deepest inversion on Monday since 1981, reflecting financial markets’ concerns about the economy.
U.S. manufacturing slumped further in June, a survey showed, reaching levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic.
Advancing issues outnumbered decliners on the NYSE by a 2.27-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored advancers.
The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 59 new highs and 47 new lows.
About 6 billion shares changed hands in U.S. exchanges, compared with the 11 billion daily average over the last 20 sessions.
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