S&P 500 hits new tech-powered high

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 outbreak. 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 suggest output from the U.S. private sector is at an 18month 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.

Stocks of home builders 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. Even within the S&P 500 index of big companies, 56% of stocks were lower, with energy producers and financial stocks dropping. But a 1.2% rise for tech stocks in the S&P 500 helped offset that.

Tech has remained remarkably resilient through the pandemic and continued to churn out big profits as work-from-home and other tech-friendly trends accelerate. Apple, which this week became the first U.S. company to have a market value of more than $2 trillion, rose 5.2%.

The Federal Reserve is continuing to prop up markets and the economy by keeping interest rates at nearly zero and buying reams of bonds. But stimulus from Congress has lapsed, and Democrats and Republicans on Capitol Hill continue to haggle.