Wall Street bounces higher as chip stocks gain

Stocks open higher on Wall Street led by retailers and tech firms

A Wall Street street sign outside the New York Stock Exchange

"It is a quiet day in terms of news and you still have the tariff fears kind of circling in the markets", said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

The pullback in wages tempered speculation the Federal Reserve would project four rate hikes - or dot plots - at its policy meeting next week, instead of the current three. By 13:07 p.m. ET, the S&P 500 was up just 0.02 percent at 2,787.14.

Canada's main stock index closed higher Monday while USA markets were mixed as questions continue about the potential impacts of metal tariffs.

However, the S&P and the Dow have almost reclaimed those losses.

"Even as the markets are looking fairly positive in general, especially south of the border, it's really a very narrowly-focused group of technology stocks that are carrying nearly all of the gains".

At the close of trading in NY, the Dow Jones Industrial Average shed 157.13 points, or 0.6%, to 25,178.61, turning lower after rising as much as 113 points earlier in the session. The S&P 500 index was down 3.55 points to 2,783.02 and the Nasdaq composite index was up 27.51 points to close at another record high of 7,588.32.

Broadcom rose 2.9 percent following report that Intel was considering a possible bid for the company.

Last week's gains were also supported by US President Donald Trump's softer stance on his decision to impose import tariffs on steel and aluminum by exempting Canada and Mexico.

Ten of the 11 major S&P sectors were higher, led by 0.62 percent gain in consumer discretionary stocks.

Lumentum's shares rose 1 percent.

Advancing issues outnumbered decliners on the NYSE by 1,592 to 877.

South Korea rose one per cent while Japan's Nikkei jumped 1.2 per cent, showing little immediate reaction as Prime Minister Shinzo Abe came under renewed fire over suspicions of cronyism involving the sale of state-owned land.

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