Tech stocks, housing, optimistic reports spur S&P 500 to record high

NEW YORK — The S&P 500 ticked higher to close at another all-time high Friday, powered by strength for technology stocks and a couple of reports on the U.S. economy that were better than expected.

The benchmark index rose 11.65 points, or 0.3%, to 3,397.16, even though the majority of stocks in the index weakened. It followed up on losses across Europe after more discouraging reports there indicated a slowdown in its economies.

The Dow Jones Industrial Average climbed 190.60, or 0.7%, to 27,930.33, and the Nasdaq composite added 46.85, or 0.4%, to 11,311.80.

The S&P 500 surpassed its prior closing high of 3,389.78, which was set on Tuesday after the index erased the last of its historic losses from the coronavirus pandemic. Despite its record-setting week, the market’s momentum has slowed recently after roaring back from its nearly 34% plunge from late February into March.

The S&P 500 rose 0.7% for the week. It was the seventh gain for the index in the last eight weeks, but the last two have been the most modest during that stretch.

Investors are still waiting for more clarity on several fronts, which could drive the next big move up or down.

The economy has shown some signs of stalling recently, with Friday’s reports from Europe the latest reminder that a steady rise in coronavirus cases may be undermining growth. They follow a U.S. report from Thursday that showed that the number of workers applying for unemployment benefits picked up last week.

But the picture remains mixed. A separate report from IHS Markit on Friday said preliminary data suggests output from the U.S. private sector is at an 18-month high. Sales of previously occupied homes were also stronger in July than economists expected, as activity exploded in every region of the country.

Those reports helped the U.S. stock market recover from declines earlier in the morning.

“The housing market is strong,” said Quincy Krosby, chief market strategist at Prudential Financial. “This week has been about housing. Each one of these reports has been strong.”

Stocks of homebuilders climbed following the data, including a 3.2% rise for D.R. Horton. But it was additional gains for tech stocks that did the most work in the S&P 500’s rally.

Most stocks on Wall Street fell, and the smaller companies in the Russell 2000 small-cap index lost 11.83, or 0.8%, to 1,552.48.