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US indices carried over last week’s improved risk appetite and ended in positive territory on Monday, achieving four consecutive days of gains and reaching their best levels in two weeks. The lack of important data on the economic calendar and the generally quiet session due to the Fed’s blackout period ahead of the September FOMC decision on September 21, definitely supported risk assets.
At the close, the Dow Jones gained 0.72% while the S&P 500 rose 1.07%, driven by gains across all sectors, but particularly by a 1.83% increase in energy as oil prices rose on Monday amid supply concerns and doubts on whether Iran is really committed to reviving the 2015 Nuclear Deal.
In addition, pharmaceutical stocks, such as Gilead Sciences and Bristol Myers, had a strong performance further bolstering the S&P 500. Shares of both companies gained more than 3% today.
From a technical standpoint, the S&P 500 has retained bullish momentum after closing above the 100-day SMA last Friday, with prices now tentatively approaching the psychological 4,200 level, but the real test could come at the 200-day simple moving average, where the index stalled last month.
