The S&P 500 and Dow rose on Monday, as investors rotated into value stocks from heavyweight tech-related names while they awaited news on progress in a fiscal support bill for the country’s battered economy.

The Nasdaq , which hit a record high every day of last week, was dragged lower by Microsoft Corp , Inc and Facebook Inc . The Dow was up 1.1% and touched a more than five-month high.

Value stocks, which tend to outperform growth coming out of a recession, have gotten a lift in recent days. The Russell 1000 value index rose 0.9% on Monday, while the Russell 1000 growth index slipped 0.6%.

Similar rotations in recent years have not lasted very long, said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

So, “I’m looking at this more of a correction in growth stocks as opposed to just a correction” in the market.

Bets on a potential coronavirus vaccine, historic fiscal and monetary support, and more recently, a better-than-expected second-quarter earnings season have brought the S&P 500 close to its February record closing high.

The Dow Jones Industrial Average rose 352.34 points, or 1.28%, to 27,785.82, the S&P 500 gained 8.95 points, or 0.27%, to 3,360.23 and the Nasdaq Composite dropped 39.74 points, or 0.36%, to 10,971.24.

Providing some support, U.S. President Donald Trump signed executive orders that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week.

U.S. Treasury Secretary Steven Mnuchin, in an interview to CNBC on Monday, said the Trump administration and Congress could reach an agreement as soon as this week if Democrats are “reasonable.”

(Graphic: Three-month spread between Russell 100 growth and value indexes

Energy and industrials , among the worst performers this year, led gains among major S&P sectors. Technology and communication services fell.

Among individual movers, Eastman Kodak Co sank after its $765-million loan agreement with the U.S. government to produce pharmaceutical ingredients was put on hold due to “recent allegations of wrongdoing.”

Microsoft Corp fell as sources said its bid to carve out parts of TikTok from its Chinese owner ByteDance will be a technically complex endeavor.

Advancing issues outnumbered declining ones on the NYSE by a 2.51-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favored advancers.

The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 101 new highs and 10 new lows.

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(Additional reporting by Ambar Warrick and Medha Singh in Bengaluru, additional reporting by Chuck Mikolajczak; editing by Uttaresh.V and Tom Brown)

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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