S&P 500 and Nasdaq hit new highs ahead of initial trade pactBusiness | 14 Jan 2020 9:40 am
Technology companies led stocks to broad gains on Wall Street Monday, driving the S&P 500 and Nasdaq composite indexes to more record highs.
Financial, communications services and industrial stocks also notched solid gains. Health care stocks were the only decliners. Bond prices fell, sending yields higher, and the price of gold fell, signs that investors were favoring higher-risk holdings.
The rally, which added to the market’s gains from last week, came as investors looked ahead to the signing of an initial trade deal with China and the potential for future talks.
Even a partial deal should remove much of the uncertainty that has weighed on companies and investors, at least until after the election, said Scott Ladner, chief investment officer for Horizon Investments in Charlotte.
“We don’t think the tariff overhang is going to be very relevant over the next nine months,” Ladner said. “Acting tough with China and imposing tariffs two years before an election is a very different story than doing it two months before an election.”
The S&P 500 index added 22.78 points, or 0.7 percent, at 3,288.13. The Nasdaq composite, which is heavily weighted with technology stocks, climbed by 95.07 points, or 1 percent, at 9,273.93. The S&P and Nasdaq previously set new highs last Thursday.
The Dow Jones Industrial Average gained by 83.28 points, or 0.3 percent, to 28,907.05.
The Russell 2000 index of smaller company stocks picked up 11.96 points, or 0.7 percent, to 1,669.61.