S&P 500 Closes Above 2,700 For First Time Ever As Tech, Energy Rally
Published Jan 03, 2018 04:26PM ET
Investing.com – US stocks closed at record highs on Wednesday as tech and energy stocks remained bullish while data pointing to solid US economic growth stoked investor sentiment on riskier assets.
The Dow Jones Industrial Average closed higher at 24922.68. The S&P 500 closed 0.64% higher, while the Nasdaq Composite closed at 7065.53, up 0.84%.
In what many believe is a continuation of the 2017 trend, the three main US indexes surged to record highs buoyed by a rally in semiconductor stocks amid growing optimism that tech stocks will continue to deliver solid earnings this year.
Energy was also the one the key catalysts for the record breaking day on Wall Street as investor continued to bet that the sector is set for strong year as tax reform measures are expected to boost earnings growth.
Upbeat manufacturing and construction data reinforced the narrative of bullish US economic growth, adding to the positive sentiment on riskier assets.
The Institute for Supply Management (ISM) index of national factory activity rose to a reading of 59.7 in December from 58.2 in the previous month. That beat economists for forecast for reading of 58.2.
A reading above 50 indicates growth in manufacturing, well below 50 indicates contraction.
The Commerce Department said construction spending rose 0.8% to a record of $1.257 trillion in November, topping economists forecast for a 0.6% rise.
In corporate news, Advanced Micro Devices Inc (NASDAQ:AMD) closed more than 5% higher as rival chipmaker Intel closed 3.4% lower amid reports its chips contains a security flaw.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: International Business Machines (NYSE:IBM) up 2.7%, Exxon Mobil Corporation (NYSE:XOM) up 2% and DowDuPont Inc (NYSE:DWDP) up 1.6%
Intel Corporation (NASDAQ:INTC) down 3.4%, Verizon Communications Inc (NYSE:VZ) down 2.1%, and Goldman Sachs Group Inc (NYSE:GS) down 0.9%, were among the worst Dow performers of the session.
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Written By: Investing.com
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