NEW YORK, June 28 — The S&P 500 and the Nasdaq hit record highs in early trade today, as tech-related growth stocks edged up, while investors awaited corporate earnings later in the week and data on a US labor market recovery.
The tech-laden Nasdaq jumped 0.6 per cent, with Microsoft Corp, Apple Inc, Amazon.com Inc and Nvidia Corp providing the biggest boost.
All major S&P sectors fell, except technology and utilities which gained 1 per cent and 0.6 per cent.
The S&P 500 on Friday logged its best weekly performance in 20 following a bipartisan agreement on a US$1.2 trillion infrastructure spending deal and waning concerns about a sooner -than-expected policy tightening from the Federal Reserve.
Both the S&P 500 and the Nasdaq hit a series of record highs last week. But the tech-heavy Nasdaq’s 4.4 per cent gain is outpacing its peers in June as investors pile back into tech-oriented growth stocks on waning worries about runaway inflation.
“It’s encouraging that investors are willing to rotate, rather than retreat, meaning to sell out everything. Value stocks are not dead, especially if we do end up getting an infrastructure package,” said Sam Stovall, chief investment strategist at CFRA.
With the S&P 500 up almost 14 per cent as the first half of 2021 draws to a close, activity in some areas of the market indicates concern over potential volatility, with some investors suggesting the market may be overdue for a significant pullback.
At 9.50am ET, the Nasdaq Composite was up 89.18 points at 14,449.57 and the S&P 500 was down 3.34 points, or 0.08 per cent, at 4,277.36.
The Dow Jones Industrial Average was down 161.37 points, or 0.47 per cent, at 34,272.47, weighed down by Boeing Co’s 2.8 per cent fall after the US Federal Aviation Administration told the planemaker that its planned 777X is not yet ready for a significant certification step.
Quarterly results from Micron Technology, ConocoPhillips and Walgreens are slated for this week. On the economic front, attention will be on consumer confidence data, a private jobs report and a crucial monthly employment report.
“The Fed is looking at the nonfarm payrolls number. If we end up with a number that is close to Wall Street estimates of 700,000, or more, then that could end up increasing the hawkish Fed rhetoric,” Stovall added.
Declining issues outnumbered advancers by a 1.6-to-1 ratio on the NYSE and the Nasdaq.
The S&P 500 posted 17 new 52-week highs and no new lows, while the Nasdaq recorded 118 new highs and nine new low. — Reuters
