By Caroline Valetkevitch
Aug 12 – The S&P 500 jumped on Wednesday, putting it just points away from its record closing high in a broad rally led by tech stocks.
After closing lower on Tuesday amid worries over a stalemate in U.S. fiscal stimulus bill talks, the S&P 500 was up more than 1% in afternoon trading and once again within striking distance of its record high close of 3,386.15 from Feb. 19, before the onset of the coronavirus crisis in the United States that caused one of Wall Street’s most dramatic crashes in history.
Heavyweights Microsoft Corp, Amazon.com Inc and Apple Inc were the top boosts to the S&P 500.
“We’re seeing buyers show up very quickly, any chance they get when the market declines. To me, that’s a very bullish sign,” said Adam Sarhan, chief executive of 50 Park Investments in New York.
The Nasdaq was the first of the three major indexes to bounce back to an all-time high in June. The Dow remains roughly 6% below its February peak.
With a better-than-feared second-quarter earnings season largely over, investors are preparing for the risk of a contested U.S. presidential election in the fall.
Democratic candidate Joe Biden on Tuesday picked Senator Kamala Harris as his choice for vice president.
Meanwhile, a breakdown in bipartisan talks over the next federal aid bill to help tens of millions of Americans suffering in the coronavirus pandemic entered a fifth day, with neither side ready to resume negotiations.
The Dow Jones Industrial Average rose 273.69 points, or 0.99%, to 27,960.6, the S&P 500 gained 48.82 points, or 1.46%, to 3,382.51 and the Nasdaq Composite added 237.44 points, or 2.2%, to 11,020.26.
Tesla Inc jumped 14.1%, providing the biggest lift to Nasdaq, as it announced a five-for-one stock split in an attempt to make its shares more accessible to employees and investors.
Latest data showed U.S. consumer prices increased more-than-expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy.
Advancing issues outnumbered declining ones on the NYSE by a 1.69-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored advancers.
The S&P 500 posted 31 new 52-week highs and no new lows; the Nasdaq Composite recorded 78 new highs and 21 new lows. (Additional reporting by Medha Singh and Ambar Warrick in Bengaluru; Editing by Arun Koyyur, Uttaresh.V and Tom Brown)