STORY: U.S. stock indexes ended higher on Monday, gaining for a third straight session, amid investor hopes the Federal Reserve could cut interest rates this year.
The Dow climbed half of one percent, the S&P 500 rose 1 percent and the Nasdaq added one-point-two percent.
Data on Friday showed U.S. job growth slowed more than expected in April, potentially taking some pressure off the U.S. central bank to keep rates higher for longer.
Plus, corporate earnings in the first quarter have so far come in stronger than forecast, and equity investors see positive momentum in recent sessions.
Technology stocks continue to be a bright spot led by the megacap firms like Google-parent Alphabet and Meta in the so-called 'Magnificent 7' which Spear Invest Founder and Chief Investment Officer Ivana Delevska thinks still have room to run.
"The Magnificent 7 have performed pretty well this year, and part of the reason is because we are at the bottom of the technology cycle and we see a lot of upside ahead driven by many factors including AI. But at the same time, they also have defensive characteristics. So as interest rates have trickled up this year. Investors are a lot more cautious and defensive, so they've shifted from the more offensive software and smaller cap and mid cap stocks to the Magnificent 7. So this is why you're seeing them perform well. Year to date, we think for the rest of the year, they're going to still perform well, but there is a lot of opportunity for the smaller cap stocks to catch up and outperform."
Stocks on the move included Paramount Global which gained three percent after the media company ended its exclusive negotiations with Skydance Media without a deal, allowing the special committee to entertain other offers from rival bidders.
And Tyson Foods which dropped close to six percent after the meatpacker surpassed Wall Street expectations for second-quarter profit but warned that consumers are being cautious about their spending because of higher prices.
