Daily Management Review

S&P 500 hits record high with tech stocks rally


The S&P 500 hit new highs on Tuesday with a rally in tech stocks, while the rest of the US stock market was subdued.

nakashi via flickr
nakashi via flickr
The broader market index has traded near record highs for more than a week and nevertheless reached its first record close since February on Tuesday. The S&P 500 began trading with a slight increase and reached 3395.06 points at the beginning of the day, and then hovered around the flat line for most of the session.

The S&P 500 closed up 7.79 points, or 0.2%, at 3,389.78 points, surpassing the previous record close of 3,386.15 points reached in February.

Stock quotes gained support in early trading following the release of data from the US Department of Commerce, according to which the number of new homes in the country jumped 22.6% in July from the previous month, well above forecasts. The major stock indices were also supported by a rally in technology stocks. Growth leaders included Adobe and Alphabet, Google's parent company.

While the latest economic data has been mostly encouraging, traders have been buffeted by uncertainty around a new economic package under discussion in Congress, tensions between the US and China, and some concerns about stock price-earnings ratios.

"The situation is such that the reporting season is gradually dying out, and there is not enough catalyst to move to the next level," said Craig Hodges, portfolio manager at Hodges Funds in Dallas.

source: bloomberg.com