The S&P 500 closed at an all-time high Monday after tropical storm Irma caused less damage than expected. Fred Katayama reports.
Relieved investors went shopping for stocks Monday, sending the S&P 500 to a record closing high. Market jitters eased as North Korea refrained from launching another missile test over the weekend and Hurricane Irma got downgraded to a tropical storm. Insurers with exposure to Irma like Travelers and Chubb led the rally joined by other financials such as Goldman Sachs and Bank of America. David Schiegoleit of U.S. Bank Private Client Reserve: SOUNDBITE: DAVID SCHIEGOLEIT, MANAGING DIRECTOR OF INVESTMENTS, U.S. BANK PRIVATE CLIENT RESERVE, (ENGLISH) SAYING: "This morning, there is the hurricane that came in obviously a devastating blow to many people but it really didn't live up to a lot of the dangers that had been plotted out. The track and the intensity of the storm spared Florida from what could have been a catastrophic disaster so you're seeing a relief rally." As Irma weakened, airline stocks like Delta, United Continental and American Airlines climbed. And safe haven assets took a step back. Gold fell, as did the Japanese yen against the dollar. Apple shares rallied a day ahead of the launch of the new iPhone, helping lift the tech sector. Shares of electric car maker Tesla revved up. China is studying when to ban production and sales of cars using traditional fuels. As in the U.S., the relief over the storm sent shares higher in Europe, too. Financials also led that rally.