record highs U.S. stocks rose Monday, with the three major indexes posting simultaneous record closes for the second time in less than a week, as investors digested rising oil prices.
“The fundamental picture has been mixed, so it’s a little bit hard to look to that as the reason for what seems to be a solid rally,” said Bruce McCain, chief investment strategist at Key Private Bank.
He also noted that Democratic nominee Hillary Clinton’s lead in the polls over her GOP counterpart, Donald Trump, may be a contributing factor to the recent rally. “Not to make a statement on which candidate is better, but usually markets prefer for the incumbent party to retain the White House.”
The Dow rose nearly 60 points, with Boeing and Goldman Sachs contributing the most gains. The Nasdaq outperformed, advancing nearly 0.6 percent.
“The market should continue to go higher on the no-alternative factor,” said Peter Cardillo, chief market economist at First Standard Financial. “The market is feeding on itself.”
“In order to get a big move down, … you need to see some news the market perceives as bad,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab. “We don’t have that right now.”
nvestors, meanwhile, were watching oil prices as U.S. crude settled 2.81 percent higher at $45.74 a barrel in choppy trade. On Monday, Russian Energy Minister Alexander Novak bolstered hopes that oil producing nations could take action to stabilize prices, telling a Saudi newspaper that his country was consulting with Saudi Arabia and other producers to achieve market stability.
“Good luck with that, if investors believe this. The move which we are seeing in the market is the real example how speculations can drive the price action. If you look at the demand equation, we had GDP data from the third biggest economy in the world and it is not something which is praising the demand for oil,” said Naeem Aslam, chief market analyst at Think Markets.
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