Meta upgrade contributes to U.S. stock gains
STORY: U.S. stocks rose across the board Monday, helped by Facebook parent Meta Platforms which gained two percent after broker Loop Capital upgraded the shares to buy from hold.
The Dow added about one-tenth of one percent. The S&P 500 climbed three-tenths and the tech-heavy Nasdaq rose two-thirds of one percent.
Large technology stocks continue to provide a lift to U.S. markets but Qontigo Global Director of Applied Research Melissa Brown says that kind of lift is unlikely to last.
“This kind of narrow breadth, this leadership that is really focused on a few names is really unsustainable. And so over, you know, it may not, you know happen tomorrow, but at some point, some of these stocks, which are already a huge part at least of the US market that doesn't tend, at least historically, that hasn't tended to continue. So, how did they become not as big a part of the US market? Well, they have to come down. Those stocks have to come down."
Investors are watching talks over the debt ceiling with President Joe Biden scheduled to meet with Republican Speaker of the House Kevin McCarthy and others Tuesday.
The U.S. Treasury Department said late Monday it still expects to be able to pay the U.S. government's bills only through June 1 without a debt limit increase.
While economic data out this week includes retail sales and an update on the housing market.
On Monday, several Fed officials indicated they expect interest rates to stay high, at odds with market expectations for a rate cut before the end of the year.