U.S. stocks were little changed on Monday as investors were reluctant to make bets ahead of U.S. elections and a Federal Reserve meeting that is expected to bring further stimulus to the economy.
Despite the cautiousness, industrial and energy shares gained after reports of strength in U.S. and Chinese manufacturing data underscored the view that the recovery continues.
Monday’s data was “very strong,” David Kupersmith, the head trader at the Greenwich, Connecticut-based Third Wave Global Investors, said. Stock indices gained more than 1 percent in early trading.
But “the focus will be on the elections and the Fed this week, so the impact from this won’t be as strong as it would have been otherwise,” Kupersmith said.