U.S. Stocks Climb as Tech Sector Bounces Back

By Mike Bird and Ese Erheriene Features Dow Jones Newswires

U.S. stocks rose Monday, driven by gains in technology shares.

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The Dow Jones Industrial Average added 78 points, or 0.4%, to 21463 and the S&P 500 index added 0.5%, on track for fresh records. The Nasdaq Composite climbed 1%.

European stocks gained ground after French legislative elections gave President Emmanuel Macron's centrist party an outright majority in the country's parliament.

The victory of the French president's political party gives him a stronger mandate to implement his policies in the eurozone's second largest economy, while offering a further sign of the receding tide of populist European politics that concerned investors, analysts say.

The Stoxx Europe 600 index added 0.8%. This week, investors look ahead to the start of formal Brexit negotiations and a decision on whether to include China's domestically traded A-shares in a benchmark emerging-market index that is widely followed.

French stocks led gains, with the country's CAC 40 index up 1%.

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"There is a new political wind blowing through Europe," said Vincent Juvyns, global market strategist at J.P. Morgan Asset Management. "Macron can now more or less freely implement his program, he won't have to compromise as much as he did when he was economy minister."

There was little reaction to the election in government bond markets. The spread between France and Germany's 10-year government bond yields tightened slightly, to around 0.35 percentage point.

The spread had blown out during the country's presidential campaign, becoming a key measure of political risk for investors and rising to as wide as 0.78 percentage point.

Early Monday, news broke that a vehicle had rammed into a crowd outside a mosque in north London, in what British authorities said was a potential terror attack. The pound edged down 0.3% against the U.S. dollar.

In Asia, Japan's Nikkei Stock Average closed up 0.6%, with a softer yen aiding a move back above 20000 points. Hong Kong's Hang Seng Index gained 1.2%, and the Shanghai Composite Index rose 0.7%.

In the commodities market, oil prices jumped, after declining during Asian trading hours. U.S. crude rose 0.3% to $44.11 a barrel.

Data out Friday afternoon in the U.S. showed another week of rising active U.S. oil-drilling rigs, but some traders say at this level, prices may be close to a floor.

"Questions on the U.S. shale's ability to keep profitable are being asked," after oil earlier hit its lowest point since November, said Stuart Ive, a client manager at OM Financial.

--Gunjan Banerji contributed to this article.

Write to Mike Bird at Mike.Bird@wsj.com and Ese Erheriene at ese.erheriene@wsj.com

(END) Dow Jones Newswires

June 19, 2017 10:14 ET (14:14 GMT)