$DIA, $SPY, $QQQ, $RUTX, $VXX, $AAPL, $AMD
President Trump cheered as US stocks posted record high closes on Thursday as optimism about a US-China trade deal firmed and as Apple and other market heavyweights posted strong gains.
“STOCK MARKET AT ALL-TIME HIGH! HOW ARE YOUR 401K’S DOING? 70%, 80%, 90% up? Only 50% up! What are you doing wrong?” he tweeted.
The S&P 500 rose 21.65 pts, or 0.7%, to 3,274.70 and surpassed its record set last week. The DJIA climbed 211.81 pts, or 0.7%, to 28,956.90, and the NAS Comp rose 74.18, or 0.8%, to 9,203.43. Both posted fresh records on solid volume.
Money flowed into riskier investments, such as tech stocks, and trickled out of traditional hiding spots for investors when they’re nervous, such as gold. A measure of fear in the stock market had its largest drop in a week.
Stocks have been rallying since Wednesday, after investors took comments from President Trump and Iranian officials to mean no military escalation is imminent in their tense conflict. It was a sharp turnaround from earlier days, when markets tumbled on the threat of war after the United States killed a top Iranian general in a drone strike.
Diminishing worries about a US-Iran war put more of the market’s focus on the economy, corporate profits and other inputs that directly affect stock prices.
The market is in pretty solid shape and we do not see any sort of recession on the horizon.
Across markets, worries about a recession have faded since last year as central banks cut interest rates and pumped stimulus into the global economy. The United States and China also moved toward an interim deal in their trade war. China confirmed Thursday that its chief envoy in tariff talks with Washington will visit next week to sign their “Phase 1” trade deal.
The spotlight will move next to Friday’s labor report, and economists expect it to show employers added 160,000 jobs last month. They also forecast the unemployment rate to hold at its low level of 3.5%. The numbers are Key because a strong job market has been propping up the economy and allowing US households to continue to spend, even as manufacturing weakens due to tariffs and trade wars.
Tech stocks powered to the biggest gains in the S&P 500 and accounted for more than 33% of the index’s gain. Apple’s 2.1% rise added momentum, and Advanced Micro Devices rose 2.4% for 1 of the larger gains in the S&P 500.
Gold fell 5.70 to 1,551.70 oz as investors felt less need for safety. It was the 2nd drop in a row for the metal, following 10 straight days of gainers.
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish in here.