Market wrap: Big Tech drives S&P 500 to 66th record this year
Technology stocks drove the equity market to a record in a volatile session ahead of Fridays options expiration.
The S&P 500 notched its 66th all-time high, with the benchmark gauge poised for the second-biggest number of annual records ever - only behind 1995. The tech-heavy Nasdaq 100 outperformed as giant chipmaker Nvidia boosted its outlook, while Apple jumped after Bloomberg News reported the company is pushing to accelerate the development of its electric car. Macy's and Kohl's paced gains in retailers after signaling consumer demand remains robust.
"Technology continues to be a key enabler of higher productivity and home to many of the fastest growing companies," said Scott Brown, a technical strategist at LPL Financial. "So does this mean investors should be shifting all of their assets over to growth stocks again? We don't necessarily think so, and continue to find opportunities in both growth and value styles."
The next six months could see the S&P 500 hitting 5,200 in an environment of reduced monetary stimulus and outperformance by cyclical companies, according to Mark Haefele, chief investment officer at UBS Global Wealth Management. That would imply an 11% rally from Wednesday's close.
Some other corporate highlights:
- U.S.-listed Chinese stocks slumped after e-commerce behemoth Alibaba's disappointing revenue outlook.
- CVS Health rose after saying it will close 900 stores over the next three years, part of a plan to decrease its store density in some areas.
- U.S. health insurers say they want more proof before paying for Biogen's Aduhelm, stalling sales of the costly new Alzheimer's therapy that the company hailed as a breakthrough for patients.
Bitcoin continued its slide Thursday, falling for a fifth consecutive day in a retreat from record highs. The world's largest cryptocurrency hasn't slumped that long since the five days that ended May 16. Unlike traditional assets, crypto assets trade on the weekend, so the streak includes Saturday and Sunday.
JPMorgan Chase economists said they now expect the Federal Reserve to raise interest rates next September, becoming the latest on Wall Street to jettison a forecast for the central bank to stay on hold through 2022. Goldman Sachs analysts said last month they expect a Fed hike in July. Their counterparts at Morgan Stanley still see officials not shifting rates throughout next year.
- The S&P 500 rose 0.3% as of 4 p.m. New York time
- The Nasdaq 100 rose 1.1%
- The Dow Jones Industrial Average fell 0.2%
- The MSCI World index was little changed
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro rose 0.5% to $1.1372
- The British pound was little changed at $1.3498
- The Japanese yen fell 0.1% to 114.24 per dollar
- The yield on 10-year Treasuries was little changed at 1.58%
- Germany's 10-year yield declined three basis points to -0.28%
- Britain's 10-year yield declined four basis points to 0.92%
- West Texas Intermediate crude rose 0.6% to $78.81 a barrel
- Gold futures fell 0.4% to $1,865.10 an ounce