The US markets closed higher on Monday, with the benchmark S&P 500 ending the session at an all-time high, in a broad rally led by financials and technology shares. Wall Street optimism was underpinned by Hurricane Irma delivering a less forceful hit on Florida than expected and North Korea failing to conduct another nuclear missile test over the weekend, reviving investor appetite for assets perceived as risky, such as equities. New York Fed President William Dudley said that it is too soon to predict when the Federal Reserve should next raise US interest rates as it continues to tighten policy, given cross currents in the economy and markets. Dudley added that it’s too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher. He said that above-trend economic growth and very easy financial conditions suggest the need to hike, while inflation that has fallen farther below the target than Fed anticipated suggests it is better to wait.
The Dow Jones Industrial Average added 259.58 points or 1.19 percent to 22,057.37, the Nasdaq edged higher by 72.07 points or 1.13 percent to 6,432.26, and the S&P 500 gained 26.68 points or 1.08 percent to 2,488.11.