US stocks ended the trading day on a positive note on Monday, with the Dow Jones Industrial Average closing up over 50 points. The Dow climbed 0.15% to 42,125.80, while the NASDAQ rose 0.15% to 17,975.80. The S&P 500 also saw gains, finishing the day up 0.23% at 5,715.46.
The rally was largely fueled by a strong performance in the consumer discretionary sector, which saw a 1.1% jump on Monday. However, the healthcare sector experienced a slight decline, falling by 0.2% during trading.
The S&P Global manufacturing PMI, a key economic indicator, fell to 47 in September, down from 47.9 the previous month and below market expectations of 48.5. This suggests that the manufacturing sector is facing headwinds. The S&P Global flash composite PMI, which combines manufacturing and services, also dipped to 54.4 in September, down from 54.6 in August and below market estimates of 54.3.
Several individual stocks saw significant movement on Monday. Kaival Brands Innovations Group, Inc. (KAVL) shares soared 148% to $1.4350 after the company and Delta Corp Holdings announced a merger and share exchange agreement. Shares of BitFuFu Inc. (FUFU) also gained, surging 15% to $3.9499, likely fueled by strength in Bitcoin prices. Biohaven Ltd. (BHVN) shares saw a 16% increase to $46.80 after the company announced its study of Troriluzole for the treatment of spinocerebellar ataxia achieved its primary endpoint.
On the downside, Elevai Labs Inc. (ELAB) shares plunged 63% to $0.1036 after the company announced the pricing of an $8.0 million public offering. Shares of Jin Medical International Ltd. (ZJYL) dropped 29% to $2.91, while MINISO Group Holding Limited (MNSO) fell 17% to $13.65 after B of A Securities downgraded the stock from Buy to Underperform. The company had recently announced plans to acquire a stake in Yonghui Superstores, a leading Chinese retailer.
In commodity markets, oil prices retreated 0.9% to $70.34, while gold prices rose 0.2% to $2,652.60. Silver prices fell 1.4% to $31.06 on Monday, while copper prices gained 0.2% to $4.3535.
European markets also closed higher on Monday. The eurozone’s STOXX 600 rose 0.40%, Germany’s DAX gained 0.68%, and France’s CAC 40 climbed 0.10%. Spain’s IBEX 35 Index rose 0.38%, while London’s FTSE 100 gained 0.36%. However, the S&P Global UK composite PMI declined to 52.9 in September from 53.8 in August, below market expectations of 53.5. Germany’s composite PMI declined for the fourth consecutive month to 47.2 in September, while the French composite PMI fell to 47.4 in September, down from 53.1 the previous month. The HCOB Eurozone manufacturing PMI slipped to 44.8 in September from 45.8 in the prior month, while services PMI declined to 50.5 in September from 52.9 in August.
In Asia Pacific markets, markets closed mostly higher on Monday. Hong Kong’s Hang Seng Index fell 0.06%, while China’s Shanghai Composite Index gained 0.44% and India’s BSE Sensex gained 0.45%. The People’s Bank of China unexpectedly cut the 14-day reverse repurchase rate by 10bps on September 23.
The Chicago Fed National Activity Index rose to +0.12 in August, up from a revised reading of -0.42 in the previous month and better than market expectations of -0.20. However, the manufacturing PMI data for both the US and Europe suggests potential challenges ahead for the global economy.
