In other corners of the market, a gauge of the dollar edged up, while gold dipped 0.2%. The yen declined.
A slew of tech deals from Amazon, Microsoft and Alphabet Inc. had provided a fresh momentum to Wall Street Monday as November trading kicked off after seven consecutive months of gains for global stocks. Since the tariff-fueled selloff in April, equities have gained about $17 trillion in market value with the rally increasingly concentrated in technology heavyweights, pushing calls for broader-market consolidation.
“Concerns over high valuations persist, and the Federal Reserve’s policy outlook appears murkier,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. “Despite the strong gains in equity markets this year, we continue to believe that this bull market has room to run.”Traders were also focused on economic reports and comments from central bank officials. US factory activity shrank in October for an eighth straight month while inflationary pressures continued to ease.
Meanwhile, Federal Reserve Governor Lisa Cook said she sees the risk of further labor-market weakness as greater than the risk that inflation will pick up. She stopped short of endorsing another interest-rate cut next month.
Her comments echoed remarks from her colleagues who were equally noncommittal about whether the central bank should deliver a third straight rate reduction when policymakers convene in December.
Chicago Fed President Austan Goolsbee warned he’s more concerned about inflation than jobs. His San Francisco counterpart Mary Daly said officials should “keep an open mind” about the possibility of a December cut. Governor Stephen Miran noted policy remains restrictive.
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