Nasdaq ends at another record, extending US stocks rally

Nasdaq ends at another record, extending US stocks rally

The Wall Street sign
FILE PHOTO: The Wall Street sign is pictured at the New York Stock Exchange (NYSE) in the Manhattan borough of New York City. REUTERS/Carlo Allegri

NEW YORK: The Nasdaq jumped to another record on Tuesday (Jun 23) as investors embraced improving economic data and shrugged off large coronavirus case increases in many parts of the United States.

The tech-rich Nasdaq Composite Index finished up 0.74 per cent at 10,131.37 as it notched its second straight record.

The Dow Jones Industrial Average advanced 0.50 per cent to 26,156.10, while the broad-based S&P 500 climbed 0.43 per cent to 3,131.29.

Data showed a big increase in new home sales in May in the US, while private sector activity in the eurozone showed significant improvement in June from the prior month.

READ: US new home sales rebound as business activity slump eases

Investors cheered these reports and largely overlooked big increases in coronavirus counts in several states, including in Texas, Oklahoma and South Carolina.

Cases are also increasing in Florida, where Governor Ron DeSantis said bars and restaurants that violate social distancing rules risk losing their liquor licenses, according to local media.

Last week, Apple announced that it was re-closing 11 stores in four states that have seen jumps in COVID-19 cases.

Art Hogan, chief market strategist at National Securities, said the market is "fragile," with investors watching if more companies follow Apple and close down again.

"If in fact we start to hear more steps backward, the market has not priced that in," he said.

Apple had another good session, winning 2.1 per cent following a series of technology announcements on Monday, including that it plans to build its own chips.

Spirit AeroSystems, a supplier to the Boeing 737 MAX, plunged 13.3 per cent as it warned regulators it could violate its agreements with creditors as it grapples with the grounding of the airplane and the coronavirus pandemic.

Boeing shed 0.4 per cent.

Source: AFP/de

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