The Nasdaq exceeds 15,000 for the first time; S&P 500 sets record
Wall Street took further steps on Tuesday after a modest rally in stocks pushed the S&P 500 to an all-time high and the Nasdaq composite broke above 15,000 for the first time.
The benchmark S&P 500 rose 0.15% after a relatively calm day in the market. Banks and a mix of retailers, travel agencies and restaurant chains were behind much of the rise. These gains offset declines in healthcare companies, houseware manufacturers and technology stocks.
The S&P 500 gained 6.70 points to 4,486.23. This is the index’s fourth consecutive gain and its first record since the start of last week. The Dow Jones Industrial Average gained 30.55 points, or 0.1%, to 35,366.26. The Nasdaq composite climbed 77.15 points, or 0.5%, to 15,019.80. The high-tech index also finished at an all-time high on Monday.
Small business stocks have overtaken the rest of the market. The Russell 2000 Index rose 22.61 points, or 1%, to 2,230.91.
Investors increased their shares in homebuilders after the government announced that sales of new homes in the United States edged up last month. Small business stocks have overtaken the rest of the market. Most treasury bill yields increased slightly. The price of crude oil saw its second consecutive solid gain, recouping more of the ground lost in the previous two weeks.
As investors monitor developments abroad in Afghanistan and with the coronavirus and its highly contagious delta variant, the lack of bad news today may have helped keep the market on the rise, Randy said. Frederick, Vice President of Commerce and Derivatives at Charles Schwab.
“In a bull market, in the absence of negative catalysts, you tend to have a bullish movement,” Frederick said. “It’s slow and gradual, but it continues to move painfully.”
Bond yields have increased. The yield on the 10-year Treasury bill rose to 1.29% from 1.25% the day before.
The latest market gains reinforce its comeback after last week, when the S&P 500 recorded its first weekly loss after two weeks of gains. Inventories rose on Monday as investors praised the Food and Drug Administration’s full approval of Pfizer’s covid-19 vaccine, expecting it may generalize adoption of the vaccine.
The approval of the Pfizer vaccine gave cities and businesses the legal backing to start demanding warrants. On Monday, New York City and the Department of Defense announced vaccination requirements. Pfizer shares fell 3.1% on Tuesday. Moderna, another coronavirus vaccine maker, fell 4.1%.
Best Buy jumped 8.3% for the biggest gain in the S&P 500 after posting better-than-expected results and upping its guidance for the year.
Travel agencies also made gains. Las Vegas Sands increased 7.5% and Wynn Resorts added 7%. Airlines and cruise lines have also increased. American Airlines grew 3.8% and Delta Air Lines grew 3.4%, while Norwegian Cruise Line rose 4.6% and Carnival grew 4.4%.
Halliburton, Occidental Petroleum and Valero Energy rose 3% or more as the price of US crude oil rose 2.9%.
Investors will look to the Federal Reserve as the Kansas City Fed’s annual conference in Jackson Hole, Wyo begins later this week. This will likely give Wall Street a better look at what the Fed can do about inflation. Investor concern is that the Fed will cut its bond buying program later this year to fight inflation.