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Latest technology updates US STOCKS-S&P 500 hits record closing excessive, regaining pre-COVID level – Reuters UK

Latest technology updates US STOCKS-S&P 500 hits record closing high, regaining pre-COVID level – Reuters UKLatest technology updates

* Nasdaq hits excessive for second straight day

* Home Depot, Walmart shares combined after outcomes (Updates to shut)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 18 (Reuters) – The S&P 500 closed at a record excessive on Tuesday, rebounding from big losses triggered by the coronavirus pandemic and crowning one of the dramatic recoveries within the index’s historical past.

The record confirms, in accordance with a extensively accepted definition, that Wall Street’s most carefully adopted index entered a bull market after hitting its pandemic low on March 23. It has surged about 55% since then.

That makes the bear market that began in late February the S&P 500’s shortest in its historical past.

Since the March 23 closing low, the S&P posted the biggest acquire in a 103-day interval in 87 years, in accordance with Refinitiv knowledge.

Trillions of {dollars} in fiscal and financial stimulus have made Wall Street flush with money, pushing yield-in search of buyers into equities. Amazon and different excessive progress technology-related shares have been considered as probably the most dependable to journey out the disaster.

Doubts concerning the underlying well being of the financial system, nevertheless, endured in Tuesday’s session, with lukewarm reactions to bumper outcomes from Home Depot and Walmart limiting features.

The S&P 500 flirted with all-time highs for a number of periods earlier than lastly hitting a brand new record, elevating questions on whether or not this run of features may final.

“The S&P 500 has been impressive and has created a lot of wealth, but I am not sure that reflects the overall health of the economy,” stated Patrick Leary, chief market strategist at Incapital.

“The rally has more to do with asset inflation, which is fueled by all the liquidity and all the continued support in the economy as well as the weakening dollar,” he added.

Unofficially, the Dow Jones Industrial Average fell 67.32 factors, or 0.24%, to 27,777.59, the S&P 500 gained 7.79 factors, or 0.23%, to three,389.78 and the Nasdaq Composite added 81.12 factors, or 0.73%, to 11,210.84.

Meanwhile Nasdaq clocked its 18th record closing excessive since early June, when it confirmed its restoration from the coronavirus promote-off. Tuesday’s record was its thirty fourth record shut thus far this yr in contrast with 31 record closing highs in 2019 and 29 in 2018.

Consumer discretionary rose probably the most amongst main S&P sectors on power in Amazon whereas technology shares offered one other main assist to the benchmark index.

Home Depot Inc reported its largest rise in quarterly similar-retailer gross sales in no less than twenty years, nevertheless, its shares fell about 1% after analysts cautioned that its gross sales might need hit their peak.

Walmart Inc traded marginally larger after posting its largest-ever progress in on-line gross sales as buyers cashed in stimulus checks and ordered every little thing from electronics and toys to groceries from the protection of their properties amid the COVID-19 pandemic.

Data on Tuesday confirmed U.S. homebuilding accelerated by probably the most in practically 4 years in July within the newest signal the housing sector is rising as one of many few areas of power in an financial system struggling a record slowdown. That additional added to market optimism.

Minutes from the Federal Reserve’s latest assembly due on Wednesday, in the meantime, could present some perception into how the central financial institution sees the restoration taking part in out. The Fed has lower charges to close zero to bolster enterprise by means of the pandemic.

Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Terence Gabriel; Editing by Cynthia Osterman

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