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Wall Street boosted by energy, defensive sectors, tech falls

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - The and the rose on Monday, as lifted and defensive sectors such as utilities and were in demand as investors were cautious about sanctions and U.S.

The energy sector <.SPNY>, which has lagged the broader <.SPX> this year, was up 1.6 percent after the imposed a range of punitive sanctions on Iran, lifting [O/R]

"Anytime utilities and consumer staples are up that's a little fear ... it's the sanctions poking a stick at a part of the world that's famous for not being amenable to that," said Kim Forrest, at in

Investor aversion to risk the day before U.S. mid-term elections also helped to put pressure on sectors such as technology, and consumer discretionary.

"Regardless of your political bent you don't know what's going to happen on Tuesday that's going to affect the next few years so you're going for safety," said Forrest.

Opinion polls showed a strong chance of Donald Trump's holding the but losing control of the to the Democrats - a potential hurdle to Trump's pro-business agenda, which has been a of the stock market's rally since the 2016 election.

At 2:43PM ET, the <.DJI> rose 201.78 points, or 0.8 percent, to 25,472.61, the <.SPX> gained 17.2 points, or 0.63 percent, to 2,740.26 and the <.IXIC> dropped 28.27 points, or 0.38 percent, to 7,328.72.

Among the S&P 500's 11 major sector indexes, the <.SPLRCR> sector was up 1.9 percent making it the biggest percentage gainer. rose 1.3 percent while consumer staples <.SPLRCS> was up 1.2 percent.

A 3 percent drop in shares represented the biggest drag on Nasdaq after a Nikkei report that the company had told its assemblers to halt plans for additional production lines dedicated to the XR.

The stock was on track to post its worst two-day loss since January 2013, after the company's disappointing holiday-quarter forecast sent its shares down 6.6 percent on Friday.

jumped 5.7 percent after the conglomerate run by billionaire said its quarterly operating profit doubled.

The gains helped lift the index <.SPSY> 1.6 percent ahead of the Federal Reserve's two-day monetary policy meeting starting on Wednesday.

Investors have been worried about tightening U.S. monetary policy, especially after a string of strong economic data, including Friday's jobs report.

Advancing issues outnumbered declining ones on the NYSE by a 1.81-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favoured decliners.

The S&P 500 posted 11 new 52-week highs and 1 new lows; the recorded 32 new highs and 51 new lows.

(Additional reporting by in Bengaluru; Editing by and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 02:14 IST