Wall Street at record high on tech re­bound

S&P 500 trad­ing near 17.6 times ex­pected earn­ings as it pierces 2,500 points mark on tech­nol­ogy shares

Gulf News - - Business -

Wall Street reached record highs on Fri­day, with the S&P 500 sur­pass­ing 2,500 points as telecom­mu­ni­ca­tions shares rose and tech­nol­ogy bounced back after two days of de­clines.

The S&P 500’s breach of the 2,500-mark came less than four months after it closed above 2,400, and brought 2017’s gain to nearly 12 per cent. Pro­fes­sional in­vestors fre­quently say they see lit­tle spe­cial sig­nif­i­cance in the S&P 500 and Dow Jones In­dus­trial Aver­age hit­ting round-num­bers in the hun­dreds and thou­sands. But such mile­stones do af­fect the sen­ti­ment of in­vestors on Main Street, said Phil Blan­cato, head of Laden­burg Thal­mann As­set Man­age­ment in New York.

“Peo­ple are con­cerned about miss­ing out as the mar­ket con­tin­ues to rally. They think maybe they need to fi­nally jump in,” Blan­cato said. “The be­hav­iour of the re­tail in­vestor is more im­por­tant than ever.” The S&P 500 in­for­ma­tion tech­nol­ogy sec­tor rose 0.30 per cent, pow­ered by an Nvidia-led surge in chip­mak­ers, while Ap­ple rose 1.01 per cent in its first gain since un­veil­ing new iPhones on Tues­day. The semi­con­duc­tor in­dex surged 1.71 per cent, boosted by Nvidia’s 6.32-per cent jump to a record high after Ever­core ISI raised its price tar­get.

AT&T rose 2.15 per cent and Ver­i­zon Com­mu­ni­ca­tions added 1.44 per cent. Along with TMo­bile, they are of­fer­ing deals for the new­est iPhones that are less gen­er­ous than in the past.

Wall Street largely shrugged off re­ports show­ing an un­ex­pected drop in US re­tail sales last month and the first drop in in­dus­trial out­put since Jan­uary, both in part due to the im­pact of Hur­ri­cane Har­vey.

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