REFILE-LIVE MARKETS-Tech recovers from last week’s wobble

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TECH RECOVERS FROM LAST WEEK’S WOBBLE

A recovery in tech stocks helped to lift the market on Monday as worries over the impact of AI on software stocks appeared to fade, while the Dow Jones Industrial Average .DJI reached a record high for the second consecutive session. The blue-chip average has now scored six record closes so far this year.

Fiscal stimulus and a strong economic outlook are helping to support the market. Some signs of a weakening labor market have also led traders to raise bets on how many times the Federal Reserve will cut rates this year, though the U.S. central bank is seen as likely to keep interest rates unchanged until June.

This week’s major focal points that will drive Fed policy will be Wednesday’s employment report for January, which is expected to show that employers added 70,000 jobs during the month, and consumer price inflation data on Friday, which is then likely to show that inflation decelerated on a yearly basis on both the headline and core basis, according to the median estimate of economists polled by Reuters.

The Nasdaq Composite .IXIC was the strongest major index, gaining 0.9%. Tech .SPLRCT also led sector gainers on Monday, while Healthcare .SPXHC and Consumer Staples .SPLRCS were the weakest performers.

Among other indexes notching record closing highs were the S&P 400 Mid Cap index .MID, the S&P 600 Small Cap index .SPCY, as well as the S&P 500 Energy .SPNY, S&P 500 Industrial, and S&P 500 Materials .SPLRCM sectors.

Here is Monday’s closing market snapshot:

(Karen Brettell, Terence Gabriel)

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