Wall Street stocks surge; S&P 500 hits all-time high

AFP
New York, NY, USA Published: Aug 22, 2018, 08:53 AM(IST)

File photo. Photograph:( Others )

Story highlights

The broad-based S&P 500 index rose to a peak 2,873.23, beating the previous record hit on January 26th

Wall Street stocks surged to new heights today amid renewed optimism the US is working towards defusing the spiralling trade confrontations.

The broad-based S&P 500 index rose to a peak 2,873.23, beating the previous record hit on January 26th, before retreating a bit on a slow summer trading day. Near 1720 GMT, the index was at 2,870.95, up 0.5 per cent.

The Dow Jones Industrial Average rose 0.4 per cent to 25,868.42, while the tech-rich Nasdaq Composite Index gained 0.9 per cent to 7,888.82.

The new record comes on the heels of comments by Commerce Secretary Wilbur Ross that he plans to hold off on a final decision on whether to impose tariffs on auto imports while trade talks with Mexico, Canada and Europe are ongoing.

In addition, US and Chinese officials this week will hold the first talks since June on the ongoing dispute that has led to the exchange of tariffs on tens of billions of dollars in goods, with more possible Analysts are cautiously optimistic on that statement and other recent moves by President Donald Trump's administration signal a true shift away from the hardline tactics that have repeatedly hit Wall Street since the spring, prompting immediate selling.

But market sentiment at least has shifted somewhat to a wait-and-see stance, analysts say.

Investors are also upbeat following strong earnings and largely positive US economic data that has pointed to solid US growth and limited inflation.

The record also comes in late August, a season known for low trading volumes when minor news reports can spur outsized stock moves.

Wall Street is set on Wednesday to reach a new landmark on the longevity of the rising market that started in 2009 just after the global financial crisis.

The S&P 500 will mark 3,453 straight days without suffering a drop of 20 per cent. That makes it the longest "bull market" since World War II, according to leading Wall Street statisticians. 

Read in App