Stocks hit record highs on Monday and were on pace for their fourth straight gain as a so-called phase one trade deal between China and the U.S. clears the path higher for Wall Street to end a banner year.
The Dow Jones Industrials came off its highs of the day, but still soared 100.51 points, to a new all-time high close of 28.235.89
The S&P 500 gained 22.65 points from Friday’s record close to 3,191.45
The NASDAQ advanced 79.35 points from Friday’s all-time high to finish at 8,814.23
Tech shares rose 0.9% and hit a record, led by a 3.4% gain in Micron Technology and a 4.1% jump in Western Digital. Goldman Sachs helped the Dow reach an all-time high, rising 1.4%.
Monday’s gains were kept in check by a 2.8% drop in Boeing. Shares of the aerospace giant fell after The Wall Street Journal reported Sunday the company was nearing a decision on possibly halting or cutting production of the 737 Max.
The report follows Federal Aviation Administration chief Steve Dickson telling the media last week the 737 Max jet’s return was unlikely to be cleared until 2020.
On the data front, the National Association of Home Builders/Wells Fargo Housing Market Index rose in December to its highest level in 20 years. Meanwhile, data from IHS Markit showed U.S. business activity hit a five-month high in December.
Sentiment was also lifted by strong economic data out of China. Chinese industrial production rose 6.2% in November on a year-over-year basis, topping expectations. Retail sales in China also jumped 8% last month.
The U.S. and China announced Friday they will move forward with a so-called phase one trade deal. As part of the agreement, the U.S. will roll back some levies on Chinese products and China will increase its purchases of U.S. agricultural products. Treasury Secretary Steven Mnuchin said will be inked in January.
Prices for the 10-Year U.S. Treasury fell, raising yields to 1.88% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices added 16 cents to $60.23 U.S. a barrel.
Gold prices dulled in price 30 cents at $1,480.90 U.S. an ounce.