Wall Street jumps to record high as tech rallies and sentiment improves
InvestingOnline.com
29/08/2018, 17:14The US Stocks market is trading positive on Wednesday as investors welcomed an upbeat GDP, the United States and Canada trade talks after the Mexico deal and news from Morgan Stanley that upgrades Amazon.
Following the Mexico agreement, officials from Canada are heading Washington to start the talks with the White House concerning a new NAFTA deal between the two countries.
Also, the US economy grows faster than expected at a 4.2% rate in the annualized GDP, better than the 4.0% expected by market and above the first advance published in July at 4.1%. 2Q GDP was a significant advance from the 2.2% reported in the first quarter of 2018.
Analysts at Argus commented that “the GDP report is full of positive news, but also confirmed inflation is percolating: ex-food and energy prices rose 2.0%. We think GDP trends are strong enough to support a Fed rate hike each quarter for at least the next four quarters.”
Tech stocks are leading the market with Alphabet, Apple, NVIDIA, and Amazon posting the most significant gains. The Dow Jones Industrial Average rose 0.32% on Wednesday to trade 84.12 points up at 26,148.14. The DJIA has posted 1.61% gains in the last five trading days.
S&P 500 daily chart August 29
The S&P 500 is advancing 0.57% so far on Wednesday to price at 2,914.16, 16.64 points up from Tuesday’s close. In the last five trading days, the S&P is 1.84% positive.
The NASDAQ Composite is moving at 8,100.87 after gaining 70.16 points or 0.87% so far today. The NASDAQ is 2.7% positive in the last five days.
The majority of sectors are higher on Wednesday with the exception of consumer staples, which is 0.06% down on the day.
The leaders are the consumer discretionary segment which is extending its recent positive momentum and rising 0.80% on the day. Information technology is 0.58% positive in the session, while the energy component is 0.52% up.
