Shares of industrial and transportation companies rose amid anticipation of a compromise on a new American stimulus package.
President Donald Trump issued executive orders over the weekend on stimulus measures such as the extension of a supplemental unemployment benefit at a reduced rate, while Democratic and Republican negotiators both signalled they were open to further talks on a more comprehensive bill.
The sector also benefited from a shift in momentum, as investors sold technology and bought into faster rising transportation shares. The Dow Jones Transportation index closed near all-time highs.
"Wall Street continues to see investors scale down their mega-cap tech bets and focus on beaten[-down] energy, industrial, materials, and consumer discretionary stocks," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group.
Photography concern Eastman Kodak shares lost more than a quarter of their value Monday after news that a planned $765 million loan to the company from the U.S. International Development Finance Corp. was put on hold as the deal has come under congressional and regulatory scrutiny. The Securities and Exchange Commission is investigating how the company controlled disclosure of the loan.
Alstom acknowledged negative financial and operational performance developments at Bombardier's rail unit released last week but said it still intends to go ahead with its takeover deal.
Porsche Automobil ticked down after the German auto brand posted an after-tax loss for the first half of the year.
Write to Rob Curran at rob.curran@dowjones.com
