The S&P 500 inched toward a record high on Tuesday (Aug 7), lifted by Amazon, Alphabet and Microsoft, and by a strong second-quarter earnings season that fuelled optimism about the strength in the USA economy.
The S&P 500 last closed at a record high on Jan 26, and a new peak would reassure investors who have anxious in recent months that nearly a decade of gains on Wall Street might be ending.
"If you look at the fundamentals, earnings are really good and the economy is growing really fast and we're finally getting growth after a long time".
Shares of Bank of America (BAC.N), JP Morgan (JPM.N) and Wells Fargo (WFC.N) rose between 0.6 percent and 0.9 percent, lifting the sector. "Momentum can go on for a long time", said Liz Young, senior investment strategist at BNY Mellon Investment Management in NY.
The S&P 500 energy index gained 0.72 percent after US sanctions on Iranian goods went into effect, intensifying concerns about supply.
Other notable index closes included the S&P 400 Mid-Cap Index at 2,009.50 for a gain of 9.46 points or 0.47%; the S&P 100 at 1,262.57 for a gain of 5.38 points or 0.43%; the Russell 3000 at 1,691.85 for a gain of 6.83 points or 0.41%; the Russell 1000 at 1,580.44 for a gain of 6.06 points or 0.38%; and the Dow Jones U.S. Select Dividend Index at 715.27 for a loss of -0.13 points or -0.02%.
Amazon.com added 0.80 percent.
A strong earnings season has kept up the momentum in the markets and cushioned major blows from trade-related issues.
Tesla jumped 7.4 per cent after Chief Executive Elon Musk in a tweet said that he was considering taking the company private.
At 12:28 a.m. EDT the Dow Jones Industrial Average .DJI was down 61.82 points, or 0.24 percent, at 25,567.09, the S&P 500 .SPX was down 2.30 points, or 0.08 percent, at 2,856.15 and the Nasdaq Composite .IXIC was down 4.03 points, or 0.05 percent, at 7,879.64. If the beat rate holds, it will be the highest on record, dating back to the first quarter of 1994, according to Thomson Reuters I/B/E/S.
The S&P 500 ended the session at 2,858.45, just short of its January record of 2,872.87. Walt Disney (DIS.N) fell 1.4 percent and was among the biggest decliners on the Dow after its quarterly profit missed estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.27-to-1 ratio favoured advancers. The Nasdaq composite climbed 30 points, or 0.4 per cent, to 7,893.
Volume on USA exchanges was 6.2 billion shares, compared with the 6.3 billion-share average for the last 20 trading days.