Dow, S&P 500 end at records as tech shares rally

Dow, S&P 500 end at records as tech shares rally

Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK: Wall Street was back in rally mode on Monday (Jun 19), with the Dow and S&P 500 finishing at records as Apple, Facebook and other tech shares posted strong gains.

The Dow Jones Industrial Average rose 144.71 points (0.68 per cent) at 21,528.99.

The broad-based S&P 500 jumped 20.31 points (0.83 per cent) to 2,453.46, while the tech-rich Nasdaq Composite Index gained 87.25 points (1.42 per cent) to 6,239.01.

Large tech shares reversed a spate of weakness and some ugly losses over the last two weeks to push sharply higher. But there also were big advances in large banks and drug companies.

Within the Dow, Apple and JPMorgan Chase each gained more than two per cent, while Merck climbed 1.1 per cent.

The moves mirrored advances in overseas markets after investors cheered French parliamentary elections that strengthened the hand of President Emmanuel Macron and the prospects for his business-friendly agenda.

Sentiment also was boosted by upbeat comments from New York Federal Reserve Bank President William Dudley.

Karl Haeling of LBBW said he he sees more scope for stocks to rise. "My longer term thinking is that the stock market is an under-owned asset, that the majority of investors are low on their assets allocation on stocks," he said.

"In the absence of really horrible news, the stock market will go higher largely because of this under-owned nature of things."

Dow member Boeing advanced 1.3 per cent after it unveiled a new plane, the 737 MAX 10, which company executives billed as "the most efficient single-aisle airplane in the skies."

Boeing almost immediately announced more than 100 orders worth some US$13.5 billion, although some were customers changing their selection of models from previous orders.

Source: AFP/de