Stock indexes close out holiday week at new highs
Stocks hit fresh records in a shortened trading session Friday as investors continued to bet on a pickup in economic growth and rising corporate profits.
The gains were modest but broad, with nearly every sector in the Standard & Poor’s 500 index rising. Utilities rose the most, up 1.4 percent.
Indexes have been rising since the presidential election, and the close on Friday capped a third week in a row of S&P 500 gains. The index is up 4 percent so far this month.
Investors anticipate that plans by President-elect Donald Trump to cut taxes, reduce regulations and spend on infrastructure will speed economic growth. Investors also are reacting to recent signs of a pickup in growth in several other major economies around the world, said Jim Paulsen, chief investment strategist for Wells Capital Management.
“We haven’t had a synchronized bounce in growth across the globe ever in this recovery” Paulsen said. “This is the first time you’re getting all the economic boats going north at the same time, and I think stock markets are reflecting that.”
The Dow Jones industrial average rose 68.96 points, or 0.4 percent, to 19,152.14. The S&P 500 climbed 8.63 points, or 0.4 percent, to 2,213.35. The Nasdaq composite added 18.24 points, or 0.3 percent, to 5,398.92. All three closings were new records.