Amgen fell 3.19% after analysts raised questions about data on the company's lung cancer drug, dragging the healthcare sector down 0.94%. Lenders, however, were up on broad gains in US Treasury yields on risings bets of an interest rate cut in the US Federal Reserve's September meeting. Financial stocks rose 1.20%, providing the biggest boost to the S&P 500, with banks gaining 2.62%. Technology stocks fell more than 1% and were the biggest drag on the benchmark index.
"The markets are continuing last week's positive sentiment but with a reduction in pessimism and fear," said Scott Brown chief economist at Raymond James in St. Petersburg, Florida. Stocks gained last week on easing US-China trade negotiations and global political tensions as well as increased hopes of an interest rate cut.
Energy stocks led gains among the 11 major S&P 500 sectors with a 1.41% rise, as oil prices got a boost from the new Saudi energy minister committing to output cuts. At 13:11 p.m. ET, the Dow Jones Industrial Average was up 20.95 points, or 0.08%, at 26,818.41, the S&P 500 was down 2.34 points, or 0.08%, at 2,976.37 and the Nasdaq Composite was down 22.49 points, or 0.28%, at 8,080.59.
Among other stocks, AT&T Inc gained 2.61% after shareholder Elliott Management Corp disclosed a $3.2 billion stake in the company and pushed for changes. Boeing Co fell 0.84% after it suspended load testing of its new widebody 777X aircraft over the weekend as media reports said a cargo door failed in a ground stress test.