© Reuters. FILE PHOTO: The New York Stock Exchange (NYSE) floor is seen after the close of trading in New York, USA, on March 18, 2020. REUTERS / Lucas Jackson / File Photo
By David French
(Reuters) – The Nasdaq surpassed its record close again on Monday, bolstered by technology stocks as Federal Reserve comments on a reduction in its monetary stimulus last week once again focused minds of investors in economic growth.
It was the fourth record-breaking record in five sessions for the S&P, and the fifth in six sessions for the Nasdaq, only to be interrupted by concern over Fed Chairman Jerome Powell’s Jackson Hole speech.
Ultimately, those concerns were unfounded, as Powell said Friday that the central bank would continue to be cautious in its approach to reducing its pandemic-era mass stimulus, while reaffirming a steady economic recovery.
“It is now clear that there will still be an extraordinary amount of support for this economy, probably until November,” said Ed Moya, senior market analyst for the Americas at OANDA.
“Some investors think the pace may not even start this year, but the only thing everyone can agree on is that President Powell has noted that he is in no hurry to raise interest rates. and that it is disconnected from slowing down with the synchronization of the rate hike “.
With this in mind, investors resorted to high-growth technology stocks that tend to benefit from lower interest rate expectations, as their value depends largely on future profits.
Apple Inc. (NASDAQ 🙂 jumped 3% to an all-time high while Microsoft Corp. (NASDAQ :), Amazon.com (NASDAQ :), Alphabet, owner of Google (NASDAQ 🙂 Inc., rose between 0.4% and 2.1%, which helps the Nasdaq with great technology to overcome the S&P 500 and the Dow.
The benchmark index tracks the longest monthly earnings streak since 2018 with the promise of easy money, with investors ignoring signs of a slowdown in the economic recovery and increasing COVID-19 cases.
The S&P 500 has risen 3% so far in August, a seasonally weak period for equities Wells Fargo (NYSE :), analysts said last week they expected the index to rise another 8% by the end of the year.
It is also on track to record one of its best year-over-year returns through August of the past six decades, said Chris Larkin, chief executive officer of E * Trade Financial (NASDAQ :).
The S&P 500 gained 19.42 points, or 0.43%, to 4,528.79 and 136.39 points added, or 0.9%, to 15,265.89. The fall of 55.96 points, or 0.16%, to 35,399.84,
Although prices rose 0.7% on Monday, energy stocks fell sharply as investors worried about the possible long-term impacts of Hurricane Ida, which roared to land on Sunday. of Port Fourchon, Louisiana, a major center of the U.S. offshore oil industry. [O/R]
The energy index fell 1.2%, with only the financial benchmark falling on the day, as banking stocks reacted to falling bond yields.
PayPal Holdings Inc. (NASDAQ 🙂 advanced 3.6% according to a CNBC report that the financial services firm was exploring the development of a stock trading platform for its US clients. The news helped send Robinhood Markets Inc. (NASDAQ 🙂 fell 6.9%.
The volume of US stock markets was 8.777 billion shares, compared to the average of 8.95 trillion in the full session of the last 20 trading days.
The S&P 500 recorded 77 new highs of 52 weeks and no new lows; the Nasdaq Composite recorded 153 new highs and 34 new lows.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.