© Reuters. ARCHIVE PHOTO: A Wall St. street sign is seen near the NYSE in New YorkNYSE in New York
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By Shashank Nayar and Medha Singh
(Reuters) – The market stopped on Monday below a historic high, with investors awaiting suggestions from the Federal Reserve meeting this week amid caution over rising borrowing costs spurred by a major fiscal stimulus.
Delta Air Lines (NYSE :), Southwest Airlines (NYSE 🙂 and JetBlue Airways (NASDAQ 🙂 said that leisure bookings are increasing and offer some of the first concrete signs that the worst may be over for the airline industry.
The airlines’ S&P 1500 index jumped about 3.8% to its biggest rise in a year, while aircraft maker Boeing (NYSE 🙂 Co added about 2%.
Other travel-related actions, including Carnival (NYSE 🙂 Corp, Wynn Resorts (NASDAQ 🙂 and MGM Resorts (NYSE :), gained between 3% and 5%.
The main Wall Street indices registered their best week in six on Friday, as the approval of a $ 1.9 trillion aid package and mass vaccinations fueled demand for economy-related stocks such as banks, energy, materials at the cost of high-growth technology names.
The main US stock indices have been turbulent in recent weeks due to an increase in yields on long-term US bonds due to fears of rising inflation and, in response, a reduction in the Fed’s easy monetary policy has worried investors.
“The US economy looks in better shape than most other developed economies,” said Hussein Sayed, chief market strategist at FXTM.
“Despite the more optimistic economic outlook, this week’s Fed meeting is not expected to bring major policy changes.”
At the end of the Fed’s two-day meeting on Wednesday, lawmakers are expected to predict that the US economy will grow by 2021 at the fastest rate in decades, reiterating its dovish stance for the foreseeable future.
Yields on 10-year reference Treasury bills hovered close to their 13-month high at 1.61%, just below the 1.64% peak reached on Friday.
At 9:47 am ET, it rose 87.51 points, or 0.27%, to 32,866.15, the S&P 500 gained 0.29 points, or 0.01%, to 3,943.63 and lost it 6.81 points, or 0.05%, to 13,313.11.
Five of the main S&P sectors were lower, with losses led by the financial and energy sector.
Tesla (NASDAQ 🙂 Inc added “Technoking of Tesla” to the list of official titles by billionaire chief executive Elon Musk in a formal regulatory process that also named chief financial officer Zachary Kirkhorn as “Master of Currency”. Tesla’s shares were almost stable.
Shares of Eli Lilly (NYSE 🙂 and Co fell about 8.5% after the “mixed” results from the pharmaceutical company’s intermediate trial testing its experimental drug to treat Alzheimer’s cast doubt on the chances of accelerated approval of the drug, according to analysts .
Early issues exceeded the decliners by a 1.2 to 1 ratio on the NYSE and a 1 to 1 ratio on the Nasdaq.
The S&P 500 recorded 59 new 52-week highs and no new lows, while the Nasdaq recorded 239 new highs and six new lows.