SEPT 2 — The S&P 500 hit a record high today, boosted by gains in heavyweight technology and energy companies, as well as on hopes that the Federal Reserve will maintain an accommodative policy amid signs that economic recovery was slowing.
The energy sector rose 2.9 per cent to lead early gains with oil majors Exxon Mobil, Chevron Corp, Schlumberger NV and Occidental Petroleum gaining between 2.2 per cent and 5.1 per cent as they tracked higher crude prices.
Netflix Inc jumped 1.9 per cent to hit a record high, while Apple Inc, Amazon.com Inc and Microsoft gained between 0.2 per cent and 0.8 per cent, driving the tech-heavy Nasdaq to a life high.
On the data front, the number of Americans filing new claims for jobless benefits fell last week, although the focus will be on the Labor Department’s monthly jobs report on Friday, which could set the stage for the Fed’s policy meeting later this month.
“With jobless claims hitting a pandemic low, there’s definitely some optimism as we look ahead to the full jobs picture tomorrow,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial.
“But keep in mind there’s no shortage of headwinds when it comes to the labor market — with pockets of resurging C0 cases impacting reopenings and employees heading back to work. And with stimulus drying up, there’s some reasoning behind the drop off in claims.”
The S&P 500 and Nasdaq have consistently hit record highs over the past few weeks as a solid corporate earnings season and hopes of continued central bank support underpinned confidence as data showed the post-pandemic US economic growth was beginning to slow.
Still, strategists said those highs could be challenged as the rebound in corporate profits loses its edge and the pressure builds on the Fed to taper its massive stimulus.
A Reuters poll last month showed the S&P 500 is likely to end 2021 at 4,500 points, slightly lower than current levels.
At 10:24 a.m. ET, the Dow Jones Industrial Average was up 116.52 points, or 0.33 per cent, at 35,429.05, the S&P 500 was up 14.66 points, or 0.32 per cent, at 4,538.75, and the Nasdaq Composite was up 30.13 points, or 0.20 per cent, at 15,339.52.
A set of merger deals also helped sentiment. Quanta Services Inc rose 9.8 per cent to hit a record high after it said it will buy privately held Blattner Holding Company in a deal valued at about US$2.7 billion.
Medtech firm Baxter International added 4.4 per cent after saying that it would buy rival Hill-Rom Holdings Inc for roughly US$10.5 billion. Hill-Rom jumped 4.4 per cent.
Online pet supplies store Chewy dropped 7.6 per cent after it reported a bigger-than-expected quarterly loss and missed Wall Street revenue estimates.
Advancing issues outnumbered decliners by a 1.97-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.89-to-1 ratio on the Nasdaq.
The S&P index recorded 72 new 52-week highs and no new low, while the Nasdaq recorded 101 new highs and seven new lows. — Reuters
