Wall Street gained on Monday, with all three major indexes closing near session highs as sustained optimism on the prospects for US-China trade relations propelled technology shares. The S&P 500 index and the Nasdaq both closed above their 100-day moving averages for the first time since October.
Shares of Apple Inc and Microsoft Corp each rose 2.7 per cent and were the top boosts to the benchmark S&P 500 index and the Nasdaq. Apple and Microsoft’s gains helped S&P 500 technology stocks gain 1.6 per cent, the greatest rise among the benchmark index’s major sectors. High expectations for Alphabet Inc’s quarterly results, announced after the bell, were likely a contributor to tech and internet stocks’ advance during market hours, said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. Yet in after-hours trading, Alphabet shares fell more than 2 per cent. While its fourth-quarter revenue and profit beat Wall Street’s expectations, spending grew more than expected.
FAANG earnings have been a mixed bag. Shares of Apple and Facebook rose after those companies’ quarterly results, while downbeat forecasts from Netflix and Amazon.com dragged down those companies’ shares. S&P 500 industrial stocks, another trade-sensitive group, posted the second-highest percentage gain among sectors, advancing 1.3 per cent.
The Dow Jones Industrial Average rose 175.48 points, or 0.7 per cent, to 25,239.37, the S&P 500 gained 18.34 points, or 0.68 per cent, to 2,724.87 and the Nasdaq Composite added 83.67 points, or 1.15 per cent, to 7,347.54.Morning-Market-Note-Tuesday-5th-February