US benchmark equity indexes closed higher Monday as markets assessed comments by a Federal Reserve official.
The Nasdaq Composite rose 1.2% to 16,349.3, while the S&P 500 gained 1% to 5,180.7. The Dow Jones Industrial Average advanced 0.5% to 38,852.3. Technology jumped 1.5%, the best sector performer, followed by communication services' 1.4% gain.
Richmond Fed President Tom Barkin said policymakers likely have time to gain confidence that inflation is moving sustainably toward their 2% goal, as the labor market remains strong. "Despite my concerns about demand and inflation, I am optimistic that today's restrictive level of rates can take the edge off demand in order to bring inflation back to our target."
Last week, the central bank's Federal Open Market Committee left interest rates unchanged for its sixth consecutive meeting, saying there's been "a lack of further progress" in bringing inflation down in recent months. The central bank's FOMC tightened monetary policy by 525 basis points from March 2022 through July 2023 to combat inflation.
The US two-year yield rose 2.7 basis points to 4.83% Monday, while the 10-year rate fell 1.1 basis points to 4.49%.
In company news, American Airlines Group (AAL) shares surged 5.8%, the second-top gainer on the S&P 500, as Bernstein adjusted its price target on the stock to $22 from $21.
Micron Technology (MU) was the best performer on the Nasdaq and among the best on the S&P 500, up 4.7%, after Baird upgraded the stock to outperform from neutral and adjusted its price target to $150 from $115.
Tyson Foods (TSN) swung to a fiscal second-quarter profit year over year despite a surprise decline in revenue, while the meat processor reiterated its outlook for flat sales in 2024. The company's shares slid 5.7%, the steepest decliner on the S&P 500.
Overall, roughly 80% of S&P 500 companies have logged their latest quarterly financial results in the current reporting cycle, with earnings up 5% year over year on the back of 4.2% growth in revenue, Oppenheimer Asset Management said in a note.
Walt Disney (DIS), Uber Technologies (UBER), Airbnb (ABNB), Warner Bros. Discovery (WBD), and Constellation Energy (CEG) are among the major companies scheduled to report results later this week.
West Texas Intermediate crude oil rose 0.7% to $78.62 per barrel Monday.
In economic news, consumer expectations regarding home price growth over the next year rebounded to the second highest level on record in February, while concerns about rising mortgage rates intensified, the New York Fed said.
Gold rose 1.1% to $2,333.90 per troy ounce, while silver jumped 3.7% to $27.68 per ounce.