U.S. Stocks Climb as Tech Sector Bounces Back

By Mike Bird and Ese Erheriene Features Dow Jones Newswires

Gains in technology shares propelled U.S. stocks higher Monday.

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The Dow Jones Industrial Average added 118 points, or 0.6%, to 21503, and the S&P 500 index added 0.7%, on track for fresh records. The Nasdaq Composite climbed 1.2%.

Technology shares in the S&P 500 have risen about 19% this year, making tech the index's best-performing sector, but the stocks also have had some recent slumps. Some analysts said Monday's gains could come from investors hunting for value after several sessions of declines.

"Now you're buying Apple at a discount," said Mike Bailey, director of research at FBB Capital Partners.

On Monday, Apple Inc. was among the biggest gainers in Dow industrials, climbing 2.5% after falling in six of the past seven sessions. Intel Corp. added 0.9%. Shares of tech companies in the S&P 500 rose 1.4%.

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.

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France's CAC 40 index gained 0.9%. The Stoxx Europe 600 index added 0.9%. This week, investors are preparing for 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.

"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."

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 fell 0.6% against the dollar.

U.S. government bonds weakened, with the yield on the benchmark 10-year U.S. Treasury note rising to 2.174%, according to Tradeweb, from 2.157% Friday. Yields rise as prices fall.

Low bond yields are one factor supporting major stock indexes, leaving investors with few alternatives to equities, some analysts said.

"With yields so low, there isn't anywhere else to put your money," said Charlie Ripley, investment strategist for Allianz Investment Management. "That's kind of the conundrum that we're in here."

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

--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 13:02 ET (17:02 GMT)