US shares closed higher on Monday, as bank stocks swelled on rising expectations of a Fed rate hike next month.
The S&P 500 market bellwether closed up 0.5% at 2,180, and a dozen points shy of matching a record high struck earlier this month.
Banking stocks benefited from re-pricing after last Friday the US Federal Reserve put a September rate hike back on the table when vice chair Stanley Fischer elaborated following a speech by his boss Janet Yellen. JP Morgan Chase (NYSE:JPM) shares closed up 1.1% at $66.95, Citigroup (NYSE:C) up 0.3% to $47.26 and Bank of America (NYSE:BAC) up 0.3% to $15.84. However, the sector cooled its jets from midsession when it was more broadly outperforming the S&P 500.
Having faced the wrath of consumers and lawmakers, the company at the centre of a storm over its alleged inflationary pricing of a life-saving anti-allergy device is now offering a partial climbdown.
Netherlands-based Mylan (NASDAQ:MYL) said on Monday it would launch an EpiPen generic alternative at a 50% discount to the branded product's list price. Read more.
Mylan shares closed up 0.4% at $43.22 on Monday.
The S&P Midcap 400 index ended up 0.7% at 1,570 and the S&P Smallcap 600 closed up 0.6% at 756.
However, some dramatic events after hours means that shares could face some turbulence at the next opening on Tuesday in the airline sector.
J Scott Kirby, president of American Airlines Group (NASDAQ:AAL) is leaving to take up the same position at rival United Continental (NYSE:UAL).
Texas-based American Airlines said Kirby, who served as president since the merger of American and US Airways in 2013, would leave effective immediately as part of the ongoing succession planning.
American Airlines shares, which ended down 0.2% at $36.17 continued to fall by 1% to $35.81 after-hours on the news. Meanwhile, United Continental Holdings shares, which ended the session up 0.2% at $46.95 proceeded to jump by 1.3% to $47.55 after the personnel news.
Midsession
US shares were firm at midsession on Monday after a broad-based gain and headwinds from higher banking stocks.
The S&P 500 index was up 0.7% to 2,183 and only around 10 points off its record high struck earlier this month.
Banking stocks benefited from re-pricing after last Friday the US Federal Reserve put a September rate hike back on the table when vice chair Stanley Fischer elaborated following a speech by his boss Janet Yellen. JP Morgan Chase (NYSE:JPM) shares were up 1.2% at $67.02 and Citigroup (NYSE:C) up 0.7% to $47.42 and Bank of America (NYSE:BAC) up 0.8% to $15.92.
The S&P Midcap 400 was also higher, by 0.9% to 1,574 and the S&P Smallcap 600 up 0.8% to 757 and led by Cloud Peak Energy Inc (NYSE:CLD) on no fresh news.