US close: Stocks end flat as investors mull Macron victory
US stocks ended flat on Monday as investors mulled centrist Emmanuel Macron's victory in the French election - a result that was largely expected - although the S&P 500 and the Nasdaq did hit intraday records.
Pro-European Macron defeated far-right rival Marine Le Pen with 66.1% of the vote to 33.9%.
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq ended unchanged at 21,012.28, 2,399.38 and 6,102.66, respectively.
Stocks may not have put in a particularly impressive performance, but Wall Street's ‘fear gauge - the CBOE Volatility Index - fell to its lowest level in more than two decades.
IG analyst Chris Beauchamp said: “On the face of it, Macron’s victory should provide a tonic for risk appetite, but it was so widely anticipated that the impact has been almost negligible.”
Market commentators also noted the challenges that lie ahead for Macron.
Spreadex analyst Connor Campbell said: “While there is no doubt the market is pleased with the election result – no-one wanted Le Pen to be added to the toxic Trump/Brexit stew – the difficulties Macron faces means that, like the thin-skinned US president, he may face an uphill battle to push through his policies.”
Aside from the French election, investors turned their attention to speeches from Fed officials, as Federal Reserve bank of St Louis president James Bullard said interest rates in the US where were they needed to be. However, his opposite number at the Cleveland Fed, Loretta Mester, said the Fed needs to remain "very vigilant" against the risk of “falling behind”.
On Friday, the San Francisco Fed's John Williams said he still believed one or two more interest rate hikes were needed in 2017.
In corporate news, Straight Path surged after an unnamed telecommunications group upped its offer for the company, trumping a previous bid by AT&T.
Sinclair Broadcast Group reversed earlier gains to end lower on news that it had launched a takeover of Tribune Media for nearly $4bn.
Shares in Kate Spade surged after it agreed to be bought by Coach Inc in a $2.4bn deal.
Elsewhere, PPG Industries ended on the back foot after Dulux owner AkzoNobel said it rejected a third unsolicited takeover offer from its US rival, saying it undervalued the company.