SP 500 Nasdaq Set Records Again

The S&P 500 and Nasdaq notched records Monday as technology stocks lifted major indexes.

The broad U.S. stock index rose 0.4%, while the tech-heavy Nasdaq Composite advanced 0.9% after both logged all-time highs on Friday. The Dow Jones Industrial Average edged lower by 0.2%.

Technology and other so-called growth stocks led the market, after Federal Reserve Chairman Jerome Powell on Friday stressed that the central bank should not overreact to a recent jump in inflation. While the central bank is expected to begin reducing its bond purchases later this year, Fed officials have emphasized that the timing of such a move won’t impact any later decision to raise interest rates from near zero.

Low interest rates tend to boost technology stocks, which often trade at high prices in part because investors expect them to post strong growth far into the future. Shares of Apple rose 3% while Microsoft shares added 1.2%.

The economically sensitive financial and energy sectors, meanwhile, lost ground as concerns about the Delta variant of Covid-19 continue. JPMorgan Chase shares fell 1.6%, and Wells Fargo shares dropped 2.8%

Source: WSJ

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