S&P 500 finishes flat; smaller-company stocks notch gains

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Major U.S. stock indexes ended mostly flat Monday, but smaller companies rose as investors hoped they'd be better shielded from the fallout of the U.S.-China trade war.

Major U.S. stock indexes ended mostly flat Monday after large companies gave up early gains, but smaller companies closed broadly higher.

“If you’re making your product or service in the U.S. and selling it to U.S. customers, you’re somewhat more insulated from the global trade volatility and the slower growth that’s spawning from that globally, too,” said Ben Phillips, chief investment officer at EventShares.The S&P 500 edged down 0.28 of a point, or less than 0.1%, to 2,978.43. The index, which is coming off two up weeks, is within 1.6% of its all-time high set in late July.

Traders are hoping for a deal between the world’s two largest economies and were encouraged last week by news that talks will resume in October.A mixed bag of economic data has also kept Wall Street focused on central banks and whether they will keep taking measures to shore up economic growth. On Friday, Federal Reserve Chairman Jerome H. Powell said the U.S. central bank doesn’t expect a recession and will take necessary actions to maintain growth.

The Russell 2000, meanwhile, continued to climb. Its 13% gain year-to-date is still far behind the S&P 500’s 18.8% increase. That’s one reason the smaller-company stocks are looking attractive right now. Payment processors helped weigh down technology sector stocks. Visa slid 2.3%, Mastercard fell 2.8% and PayPal lost 4.2%. Drugmakers led the slide in healthcare stocks. Merck slid 3.6% and Abbott Laboratories fell 2.1%.

Benchmark crude oil rose $1.33 to settle at $57.85 a barrel. Brent crude oil, the international standard, gained $1.05 to close at $62.59 a barrel.

 

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