US Stocks: Benchmark S&P 500 Index Close to Confirming New Bull Market
The major U.S. equity indexes finished higher on Wednesday with the benchmark S&P 500 Index straddling a new record closing high most of the session in a broad-based rally led by a recovery in technology stocks.
In the cash market, the S&P 500 Index settled at 3380.35, up 46.66 or +1.55%. The blue chip Dow Jones Industrial Average finished at 27976.84, up 289.93 or +1.15% and the technology-driven NASDAQ Composite closed at 11012.24, up 229.42 or +2.42%.
The S&P 500 is less than 1.0% below its intraday record high of 3,393.52. The NASDAQ Composite was the first of the three major indexes to bounce back to an all-time high in June. The Dow is about 6% below its February peak.
S&P 500 Index Posts New Record High
Late in the session, the index was above the record high close of 3,386.15 from February 19, before the onset of the coronavirus crisis in the United States that caused one of Wall Street’s most dramatic sell-offs in history.
If the S&P 500 Index manages to close above that level, the high would confirm, according to a widely accepted definition in the technical analysis community, that Wall Street’s most widely followed index has been in a new bull market since its pandemic low on March 23.
Tech Shares Carry Index Higher but Relief Stalemate Raises Concerns
Wednesday’s rally was led by several tech giants, but some investors were cautious following a stalemate over the new coronavirus relief bill.
U.S. Treasury Secretary Steven Mnuchin said the White House and top Democrats in Congress may not be able to reach a deal on coronavirus aid, marking a fifth day without talks, as the stalemate blocked relief to tens of millions of Americans.
Sectors and Stocks
All major S&P sectors climbed, with financials, energy and communication services leading the charge.
Tesla Inc rose 5% as it announced a five-for-one stock split in an attempt to make its shares more accessible to employees and investors.
Drugmaker Moderna Inc. gained about 3.7% after entering a deal with the United States to produce 100 million doses of its potential COVID-19 vaccine for around $1.5 billion.
Advancing issues outnumbered decliners by a 4.27-to-1 ratio on the NYSE and by a 3.00-to-1 ratio on the NASDAQ, Reuters reported.
Additionally, the S&P Index recorded eight new 52-week highs and no new lows, while the NASDAQ Composite recorded 32 new highs and nine new lows.
For a look at all of today’s economic events, check out our economic calendar.