US Stocks: NASDAQ Finishes Higher While S&P 500 Books Biggest August Gain since 1986

It was a funny day on Wall Street on Monday with the major indexes finishing mixed with some posting monthly milestones. Low volume contributed to the lackluster trade as most of the major players took to the sidelines ahead of the end of the summer trading season this week-end.

While the S&P 500 boasted its steepest August percentage gain in more than three decades, it ended Monday’s session slightly lower and the Dow also lost ground as investors took a pause. Nonetheless, the NASDAQ Composite managed to close higher, thanks to high-flying stocks including Apple Inc.

In the cash market on Monday, the benchmark S&P 500 Index settled at 3500.31, down 7.70 or -0.26%. The blue chip Dow Jones Industrial Average finished at 28430.05, down 223.82 or -0.89% and the technology-driven NASDAQ Composite closed at 11775.46, up 79.83 or +0.84%.

August Recap

The Federal Reserve’s commitment to tolerate inflation and keep interest rates low, positive developments in vaccines and treatments for COVID-19 and a rally in tech-focused stocks helped the S&P 500 and NASDAQ hit record highs in August.

For the month the S&P showed a gain of 7.01%, its biggest advance for August since 1986 when it rose 7.1% that month. The three main indexes showed their fifth straight monthly rise following March lows, even as economic data pointed to an uneven recovery from the steep downturn, and the number of COVID-19 cases continued to rise throughout August.

For the S&P, this was its longest winning streak on a monthly basis since a six-month run from April to September 2018. And the benchmark’s 35.6% gain since April marked the strongest five-month run for the S&P 500 since 1938, according to data from Bespoke Investment Group.

The S&P finished the month about 3.8% above its pre-crisis record and the NASDAQ Composite closed almost 20% above its pre-crisis record closing high.

Sectors and Stocks in the News

Technology, then healthcare and utilities stocks were the biggest percentage gainers among the 11 major S&P sectors while energy was the biggest percentage decliner.

Apple ended the day 3.4% higher at $129.04 while Tesla closed up 12.6% at $498.32.

Aimmune Therapeutics Inc’s shares soared 171.6% after Swiss food group Nestle SA offered to pay $2 billion full ownership of the peanut allergy treatment maker.

Shares of Microsoft Corp, Walmart Inc and Oracle Corp – all suitors for TikTok’s U.S. assets – fell as China’s new rules around tech exports meant a deal with TikTok owner Byte Dance could need Beijing’s approval.

For a look at all of today’s economic events, check out our economic calendar.