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US stocks extended their gains on Monday as oil prices advanced and investors appeared to shrug off geopolitical concerns and keep an eye on updates on the US economy.
The S&P 500 rose 0.4 per cent to 2,364.26 in a broad-based rally but with the energy sector rising 1.1 per cent and leading the gains on the benchmark index. Meanwhile, the Dow Jones Industrial Average rose 0.4 per cent to 20,739.58 and the Nasdaq Composite rose 0.4 per cent to 5,900.96.
US crude prices were up for a fifth straight day on concerns of supply disruptions in the Middle East following US airstrikes on Syria last week. Analysts have noted that while the strikes themselves did not disrupt supplies the markets are sensitive to the implications of the strike.
“We cannot really say that the market price wise places too much emphasis on the Syrian event other than the intraday spike last Friday,” Bjarne Schieldrop, chief commodities analyst at SEB, said. “It is however clear that the developments in Syria should be factored in as an additional risk premium in the oil price going forward especially now that oil inventories are drawing down and the market is no longer in massive surplus.”
West Texas Intermediate, the US crude marker, rose 1.2 per cent to $52.86 a barrel, while, Brent crude, the global oil benchmark, was up 1.1 per cent to $55.85 per barrel.
Investors also await updates on the health of the US economy and monetary policy — as they await a speech and Q&A from Federal Reserve chair Janet Yellen and the latest US retail sales and inflation data later in the week — and corporate America as banks begin reporting results this week.
Elsewhere, Treasuries advanced with the yield on the US 10-year note, which moves inversely to price, sliding 2.3 basis points to 2.359 per cent, while gold prices slid 0.2 per cent to $1,251.10 a troy ounce.