Roundup: Nasdaq ends above 5,000 amid soft economic data, Chinese rate cut

U.S. stocks surged to close at record highs Monday, with the Nasdaq Composite Index above the round-number mark of 5,000 points for the first time since March 2000, as investors meditated on downbeat economic data and an interest rate cut in China.

The Nasdaq went up 44.57 points, or 0.90 percent, to close at 5, 008.10. The tech-heavy index set its all-time high of 5,132.52 points on March 10, 2000, and closed at a record of 5,048.62 points on the same day.

The Dow closed at its all-time high of 18,288.63 points, up 155. 93 points, or 0.86 percent, setting its fourth closing record for 2015.

The S&P 500 ended at its fifth record close for the year, up 12. 89 points, or 0.61 percent, to 2,117.39.

Growth in the U.S. manufacturing sector gathered momentum in February, according to financial data firm Markit Monday. The final seasonally adjusted Markit U.S. Manufacturing Purchasing Managers Index (PMI) rose to 55.1 in February from 53.9 in the previous month, its highest level since October 2014.

However, according to a report released by the Institute for Supply Management Monday, the February PMI registered 52.9 percent, a decrease of 0.6 percentage point from January's reading of 53.5 percent.

In January, personal income increased 0.3 percent, missing market consensus of 0.4 percent, while personal spending fell 0.2 percent, said the U.S. Commerce Department Monday. In the United States, consumer spending accounts for more than two-thirds of the country's economy activity.

"The most important news in today's income and consumption data was the sharp fall in prices. When real spending can increase 0.3 percent despite a 0.2 percent drop in nominal spending, it puts consumers in a very good place indeed, where savings are growing at the same time real consumption growth is strong," said Chris Low, chief economist at FTN Financial, in a note.

Analysts also expected that relatively soft economic data might make the Federal Reserve stay accommodative for longer to begin raising rates.

Adding positive sentiment to the market, the People's Bank of China, the country's central bank, on Saturday announced that it would cut the benchmark deposit and loan interest rate by 25 basis points (bps) starting March 1.

Asian stocks increased broadly following China's rate cut Monday, with Chinese benchmark Shanghai Composite Index rising 0. 78 percent to finish at 3,336.28 points.

In corporate news, Berkshire Hathaway is in focus following the release of Warren Buffett's annual investment letter and the company's latest earnings. Dipping to 4.16 billion U.S. dollars from 4.99 billion dollars a year earlier, Berkshire posted a 16.7 percent decline in the fourth quarter net profit over the weekend.

Buffett said it was likely that although Berkshire would outperform other companies in the future, its size may make it impossible to equal past gains.

Shares of Berkshire Hathaway (BRK-A) fell 0.37 percent to 220, 365 U.S. dollars apiece Monday.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 2.25 percent to end at 13.04 Monday.

In other markets, oil prices went down Monday amid growing supplies from the United States and the Organization of Petroleum Exporting Countries.

Light, sweet crude for April delivery lost 0.17 dollar to settle at 49.59 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery moved down 3.04 dollars to close at 59.54 dollars a barrel.

The U.S. dollar rose against other major currencies Monday despite overall downbeat economic data from the country.

In late New York trading, the euro fell to 1.1188 dollars from 1.1193 dollars in the previous session, while the greenback bought 120.15 Japanese yen, higher than 119.68 yen of the previous session.

Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday as investors took profits after a three- session rise.

The most active gold contract for April delivery decreased 4.9 dollars, or 0.40 percent, to settle at 1,208.20 dollars per ounce. Endite