More blowout tech profits push S&P 500 higher

More blowout profit reports from big tech companies pushed the S&P 500 to an all-time high Wednesday.

The benchmark index rose 1 percent, even though most of the stocks within it closed lower. Technology stocks accounted for the lion’s share of the gains, outweighing losses in health care, utilities, energy and other sectors.

The S&P 500 has been notching record highs this month, adding to its remarkable turnaround this year from a nearly 34 percent skid this spring as the pandemic ravaged the economy. While the market’s movements have remained almost relentlessly upward in recent weeks, powered largely by big technology stocks, its momentum has slowed. Recent data reports have shown a mixed picture on the economy, where activity has largely slowed following its initial rebound from its plummet into recession.

Still, the latest economic data provided more reason for investor optimism. The Commerce Department said Wednesday that orders for transportation equipment, computers and other long-lasting goods jumped more in July from June than economists expected. One closely watched number in the report, which gives an indication of business investment plans, rose 1.9 percent in July.

“The economy continues to show signs of recovery,” said Patrick Schaffer, global investment specialist at J.P. Morgan Private Bank. “Virus containment strategies seem more targeted and less blunt than they were in the initial phases.” of the pandemic.

The S&P 500 gained 35.11 points to 3,478.73. The Dow Jones Industrial Average rose 83.48 points, or 0.3 percent, to 28,331.92. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 198.59 points, or 1.7 percent, to 11,665.06, its third-straight record high. Smaller companies struggled. The Russell 2000 index of small-cap stocks fell 11.02 points, or 0.7 percent, to 1,560.19.

The yield on the 10-year Treasury rose to 0.69 percent from 0.68 percent late Tuesday. It’s been climbing in recent weeks, up from 0.53 percent at the end of July, and it tends to move with investors’ expectations for the economy and inflation.