NEW YORK (Reuters) – Nasdaq ended at a record high on Thursday, with the S&P 500 and Dow also rising as gains in heavyweight tech stocks outweighed downbeat data showing the Federal Reserve’s view from a difficult path to economic recovery.
Profits at Apple Inc. – the only publicly traded US company to exceed the $ 2 trillion market mark – Amazon.com Inc and Microsoft Corp supported gains from the three major indices when investors bet they would ride out the economic crisis .
The Dow Jones Industrial Average ended at 46.85 points, or 0.17%, after 27,739.73, the S&P 500 gained 10.66 points, or 0.32%, to 3,385.51 and the Nasdaq Composite added 118.49 points, or 1.06%, to 11,264.95.
Shares had opened lower on data showing unemployment claims had unexpectedly risen back above the 1 million mark last week after falling below that level for the first time since the start of the pandemic.
Separate data from the Philadelphia Fed showed that an index for business conditions fell more than expected in August.
The volatility in unemployment claims followed the end of July and an additional $ 600 weekly unemployment benefit $ and came as Democrats in Congress failed to reach an agreement with the White House on extending it.
“Investors are looking through this decline to a point where we will start to get a recovery, especially with the Federal Reserve backstopping the companies,” said Brian Reynolds, chief market strategist at Reynolds Strategies.
‘Whether it’s right or wrong, so be it. Although, I think the market is getting a little too exuberant, ”he added.
Nasdaq closed its 19th record since early June, when it confirmed its recovery from coronavirus sales. Thursday’s record close was his 35th so far this year compared to 31 record highs in 2019 and 29 in 2018.
Despite signs that parts of the economy are still far from pre-pandemic levels, the benchmark S&P 500 index completed its fastest recovery from a bear market this week, joining the Nasdaq in scaling new peaks. It also confirmed a bull market for the S&P 500.
The S&P 500 and Nasdaq withdrew a grim assessment of the US economy on Wednesday after minutes of the Fed’s last policy meeting, because it has to do with the pandemic, but initially ruled out more foolish policies.
Economically sensitive financial and energy sectors were some of the largest percentage losers among the major S&P sectors.
Nvidia Corp did not change much at $ 485.64 after placing better-than-expected quarterly sales.
Intel Corp rose 1.7% to $ 49.17 after announcing a $ 10 billion share sale plan.
Shares of Tesla went above the $ 2,000 mark for the first time on Thursday when the electric carmaker extended its recent rally ahead of an upcoming stock split.
L Brands Inc advanced 3.8% to $ 29.57 after reporting a surprising quarterly profit, stimulated by strong demand for Bath & Body Works’ products as well as higher online sales of Victoria’s Secret lingerie.
Declining issues are the progress on the NYSE with a 1.54-to-1 ratio greater than it; on Nasdaq, a 1.46-to-1 ratio favored declines.
The S&P 500 posted 18 new highs of 52 weeks and no new lows; the Nasdaq Composite recorded 66 new highs and 28 new lows.
Report by Gertrude Chavez-Dreyfuss; Edited by Cynthia Osterman
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