Tech gains push indexes to record

U.S. stocks plowed to new records amid a broad rally in technology shares, as investors speculated the Trump administration will make progress this week on trade spats. Oil surged toward $70 a barrel.

The S&P 500 Index rose a fourth day to close above 2,900 for the first time, as Amazon.com and Alphabet climbed following an upbeat report from Morgan Stanley. The Nasdaq indexes hit fresh highs. The dollar weakened versus major peers, emerging-market equities edged higher and Treasuries slipped.

The pound rallied after the European Union revived hopes of a Brexit deal before the U.K. exits the common area in March. Earlier, shares in Japan and Australia set the pace as the MSCI Asia Pacific Index climbed, though stocks in China dropped. The euro weakened after the Italian government was reported to be hoping for a new program of European Central Bank bond purchases.

Investors piled into American equities as the Northern hemisphere’s traditional vacation period grinds to a close. While risks abound, from legal threats to President Donald Trump’s administration and turmoil in emerging markets to ongoing trade tension between the world’s major economies, signs are emerging Canada may join Mexico to reach a pact with the U.S.

Elsewhere, Amazon.com was headed for its biggest gain in four months, pulling within $26 billion of becoming America’s second trillion-dollar company, after Morgan Stanley said sales growth remains strong.

The rally extended a run in which Jeff Bezos’ online superstore has surged almost 550 percent since the end of 2014, adding roughly $800 billion to its market value. Apple became the first U.S. company with a 13-digit capitalization this month, crossing over for the first time on Aug. 2.

Morgan Stanley lifted its price targets on Amazon and FAANG peer Alphabet Inc. by 35 percent and 14 percent respectively on Wednesday, to the highest levels among analysts surveyed by Bloomberg. Investors took notice, sending Amazon up as much as 3.4 percent and Alphabet up as much as 1.7 percent.

Amazon closed at $1,998.10, rising for a fourth straight day. Up 71 percent in 2018, it’s the fifth-best performer in the S&P 500 this year.