S&P 500, NASDAQ, and Dow Rose to Fresh Record Highs
The S&P 500 pulled back last week and resumed its upward movement by rising to fresh record highs on Monday. Carrying forward the strength, the S&P 500 opened strong on Tuesday and rose as the day progressed. On September 12, nine out of the S&P 500’s 11 major sectors moved higher. Strength in the telecom services and financials sectors pushed the market higher, while weakness in the real estate and utilities sectors limited the gains.
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This week, the S&P 500 opened with a strong sentiment. Geopolitical concerns cooled down and supported the market. North Korea didn’t test launch missiles and Hurricane Irma weakened, which increased the market’s risk appetite. Financial stocks rose due to support from upward movement in Treasury yields on Tuesday. Treasuries gained momentum after Secretary of the Treasury Steven Mnuchin commented that he was hopeful that tax reforms will be finalized by the end of 2017. On the economic data front, according to the U.S. Bureau of Labor Statistics, the US JOLTs Job Openings for July rose to 6.17 million, which is higher than analysts’ forecast of 5.96 million.
On September 12, the S&P 500 started the day higher and recorded a new record daily close. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On September 12, it rose 1.2% to 10.71. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index and the Dow Jones Industrial Average also started the day higher and closed the day at fresh highs. The NASDAQ Composite Index rose 0.34% and closed the day at 6,454.28. The Dow Jones Industrial Average rose 0.28% and closed at 22,118.86.
Next, we’ll discuss the S&P 500’s top gainers on September 12.