S&P 500 Beats Closing Record of 3025.86 from July 26
The stock index rose 15.83 points, or 0.5%, to 3026.12 in midday trading, climbing above its previous closing record of 3025.86 from July 26.
Stock gains accelerated after reports that the U.S. and China made progress in trade discussions, edging closer to finalizing portions of a phase one deal.
Shares of tech and industrial giants were the biggest winners of the S&P 500’s 11 sectors.
The Nasdaq Composite reversed an early loss to add about 0.8%.
- Shares of Intel went 7.8% higher in early trading when it raised its outlook for the year and posted an increase in third-quarter earnings
- Charter Communications rose 7.7% after the cable company’s third-quarter profit fell less than expected and revenue beat forecasts.
- Shares of Amazon.com dropped about 1.8% after the tech giant reported a 26% fall in profit as it invested heavily to speed up shipping times.
The Dow Jones Industrial Average gained 0.7%.
Caterpillar, a bellwether stock for trade, jumped 3.4%.
“We know that’s not going to last forever,” said John Zaller, chief investment officer of MAI Capital Management, of the recent market calm. Additionally, investors are looking ahead to the Federal Reserve’s meeting next week, with many betting on an interest rate cut.
On Friday, the University of Michigan issued the final results of its October consumer sentiment survey, showing that Americans’ feelings about the economy declined slightly. Retail sales numbers showed that consumers pulled back on spending in September.
Around the World
- The outlook for growth and inflation in the eurozone over the coming years was lowered by forecasters surveyed by the European Central Bank.
- “We are still waiting for a proper rebound” in economic growth in Germany, said Inga Fechner, an economist at ING. Business sentiment remains weak amid worrying signs from the country’s services sector, she added.
- Russia’s central bank on Friday cut rates by half a percentage point—the fourth cut since June and the largest to date—highlighting the risk of a global economic slowdown.
- The British pound dropped 0.3% against the U.S. dollar, after earlier having recovered from an even sharper drop Thursday evening. Prime Minister
- Boris Johnson called for a snap general election on Dec. 12 in an effort to pressure his political opponents to back his Brexit deal. “The continued uncertainty over Brexit is hanging over markets today,” said CMC Markets analyst David Madden