The S&P 500 and Dow Jones soared to new record highs in today’s session, supported by technology stocks.
THE S&P 500 rose 0.7% to 5,792.04 points after reaching an all-time high – the 44th this year, while Nasdaq closed up 0.6% at 18,291.62. THE Dow Jones Index strengthened by 431.63 points or 1% closing at an all-time high of 42,512 points.
Technology stocks led the rally, with Microsoft, Amazon and Apple gaining more than 1%. Super Micro Computer recorded an intra-session rally of 7%. Today’s gains helped correct October’s turbulent start, pushing major stock indexes into positive territory for the month.
Stocks held on to gains after minutes from the Fed’s latest meeting showed there was a substantial majority of lawmakers in favor of a larger rate cut of 50 basis points.
Today’s gains are coming despite fears of a full-blown war in the Middle East and a disappointing session in China’s stock market, as investors cashed in on gains resulting from the recent rally. The Shenzhen stock market suffered its worst session since 1997. Alphabet lost 2% on news that the US Department of Justice is considering breaking up the US giant.
However, despite today’s gains, the market is prone to greater volatility in October, which is considered the most volatile month of the year – especially ahead of the US elections.
On the economic front, investors await US consumer and producer price data tomorrow Thursday and Friday. Also on Friday, quarterly results from major banks, including JPMorgan Chase and Wells Fargo, are announced.