New York — Wall Street is waiting for heavyweight economic data to come over the weekend, so US stocks have drifted further to record highs on Tuesday’s listless trading day.
The S & P 500 rose 1.19 points (less than 0.1%) to 4,291.80, adding to the all-time high set a day ago. While more stocks fell than they rose in the index, tech profits made up for weaknesses in banks and utilities.
The Dow Jones Industrial Average rose 9.02 points (less than 0.1%) to 34,292.29. The Nasdaq Composite closed at 14,528.33, adding a record 27.83, or 0.2%, from the previous day.
Equities set a recent record of optimism that the economy is strengthening and the Federal Reserve will maintain low interest rates for some time.
The report released on Tuesday morning Trust among US consumers It has surpassed economists’ expectations for a slight decline and continues to rise. This is important for an economy that consists primarily of consumer spending.
Another report showed that House price It rose again nationwide in April and continued at a ferocious pace.
With one day left in June, the market is preparing to conclude the first half of this year. The S & P 500 has returned to the beginning of the millennium and is on track to rise by 14.3%, more than double the full-year average.
Technology stocks did a lot of hard work for the wider market on Tuesday. Apple was up 1.2% and Microsoft was up 1%.
Major banks Dividend increase and share buyback After passing the latest version of the Federal Reserve “Stress test.”
Morgan Stanley will repurchase its $ 12 billion share buyback, up 3.4% after announcing a doubling of dividends. Other bank stocks were mixed following their own announcement. Goldman Sachs rose 1.1%, while Bank of America fell 1.6%. As a group, S & P 500 financial stocks have fallen.
The big economic data this week is the employment report on Friday, June. Economists expect to create 675,000 more jobs than US employers cut, indicating that the unemployment rate has fallen to 5.7%.
Employment growth has been tremendous lately, disappointingly below the expectations of economists in recent months. This is important because the FRB is likely to maintain support for the economy through low interest rates, as long as the job market appears to be in need of help.
Andrew Slimmon, Portfolio Manager at Morgan Stanley Investment Management, said:
Central banks, on the other hand, stick to the position that high inflation is likely to be temporary. It will allow you to keep interest rates lower than if it weren’t.
Long-term bond yields have leveled off after soaring at the beginning of the year, partly due to inflation concerns. The Treasury yield for 10 years fell from 1.48% at the end of Monday to 1.47%.
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