S&P 500, Nasdaq hit record-high closes amid economic data
REUTERS/BRENDAN MCDERMID
Traders work on the floor at the New York Stock Exchange in New York City, on Monday. The S&P 500 and Nasdaq indexes closed at record highs today, powered mainly by technology stocks as markets digested economic data that could support a much-expected start to the Federal Reserve’s policy easing cycle.
NEW YORK >> The S&P 500 and Nasdaq indexes closed at record highs today, powered mainly by technology stocks as markets digested economic data that could support a much-expected start to the Federal Reserve’s policy easing cycle.
The May private payrolls report today became the latest data to suggest an easing in labor market tightness that could propel the Fed to begin cutting rates this year. A report on Tuesday showed job openings fell in April to the fewest in more than three years.
“We’re seeing the economic data starting to ease up a little bit and the repercussions for that is that you’re seeing the pressure on rates come off the boil a little bit mixed in with the potential for weaker economic data, which is a pretty good recipe for the bond market,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions in Boston.
>> RELATED: Nvidia’s stock market value hits $3 trillion for first time
Traders now see a nearly 69% chance of a September rate reduction, according to the CME’s FedWatch tool. Expectations had hovered around 50% last week.
U.S. 10-year Treasury yields fell to a two-month low today after a report pointed to weaker-than-expected job growth ahead of Friday’s highly anticipated government employment report for May.
Don't miss out on what's happening!
Stay in touch with top news, as it happens, conveniently in your email inbox. It's FREE!
According to preliminary data, the S&P 500 gained 62.30 points, or 1.18%, to end at 5,353.64 points, while the Nasdaq Composite gained 329.34 points, or 1.95%, to 17,186.38. The Dow Jones Industrial Average rose 95.39 points, or 0.25%, to 38,806.68.
Chip stocks leapt, buoyed by gains to Nvidia and Taiwan Semiconductor Manufacturing, which both touched record highs.
Hewlett Packard Enterprise rose after forecasting third-quarter revenue above Street expectations, helped by upbeat demand for its AI servers.
Dollar Tree slipped after a disappointing quarterly profit forecast. The budget retailer said it would explore options that include a potential sale or spinoff of Family Dollar.
Intel gained after buyout firm Apollo Global Management agreed to purchase a 49% equity interest for $11 billion in a joint venture related to the chipmaker’s Ireland manufacturing unit.
CrowdStrike Holdings jumped after forecasting second-quarter revenue above estimates when markets closed on Tuesday.
The S&P 500’s previous record-high close was 5,321.41 on May 21, and the Nasdaq’s previous record close was 17,019.88 on May 28.
Additional reporting by Lisa Mattackal and Johann M Cherian.
