US stocks started the week higher despite opening in negative territory as Apple (AAPL), Alphabet, (AAPL), Microsoft (MSFT) and Tesla (TSLA) logged gains Monday.
The Dow Jones Industrial Average rose 0.5% to 33,912.24, with the S&P 500 up 0.4% to 4,297.14, and the Nasdaq Composite 0.6% higher at 13,128.05.
The energy sector was the steepest decline, while consumer staples led the gainers.
West Texas Intermediate sank 3.4% to $88.92 a barrel.
The US two-year yield dropped 5.6 basis points to 3.20%, and the 10-year yield dived 5.4 basis points to 2.80%.
Tesla ended 3% higher among the top gainers on the Nasdaq 100, while megacap stocks Apple, Alphabet, and Microsoft gained between 0.3% and 0.6%.
Government bond yields fell following a slump in a New York manufacturing gauge and macroeconomic data from China, the second largest economy in the world, missed expectations. The New York Federal Reserve's Empire State manufacturing index fell to -31.3 in August from 11.1 in July, compared with a decrease expected to 5 in a survey compiled by Bloomberg. The data represents the first reading for the manufacturing sector for August and suggests a severe contraction.
China's retail sales missed expectations, slowing 40 basis points from June to 2.7% year-over-year in July compared with the median on a Bloomberg survey of 4.9%, according to a note from Daiwa Capital. Industrial production rose by 3.8% versus a 4.3% increase forecast in a survey compiled by Bloomberg.
In other economic news, The National Association of Home Builders' monthly housing market index fell to 49 in August from 55 in July, below estimates for a decline to 54 in a survey compiled by Bloomberg. "Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession," NAHB Chief Economist Robert Dietz said.
The Commerce Department's monthly home construction data for July will be released at 8:30 am ET Tuesday.
In company news, Gilead Sciences (GILD) unveiled statistically significant results from the second interim analysis of the key secondary endpoint of overall survival in the late-stage study of Trodelvy in patients with metastatic breast cancer. Shares jumped 5.2%, the second-biggest gainer on the S&P 500 and the Nasdaq 100.
Topping the S&P 500 index and the Nasdaq 100 was Illumina (ILMN), whose shares soared almost 9% Monday, rebounding from last week's drop after the company posted Q2 adjusted earnings on Aug. 11 of $0.57 per diluted share, down from $1.87 a year ago. Revenue for the quarter was $1.16 billion, up from $1.13 billion a year earlier.
Gold was down 1.2% to $1,794.70 per troy ounce, with silver down 2.4% to $20.36 per ounce.