Wall Street at record high on tech rebound

S&P 500 trading near 17.6 times expected earnings as it pierces 2,500 points mark on technology shares

Wall Street reached record highs on Friday, with the S&P 500 surpassing 2,500 points as telecommunications shares rose and technology bounced back after two days of declines.

The S&P 500’s breach of the 2,500-mark came less than four months after it closed above 2,400, and brought 2017’s gain to nearly 12 per cent. Professional investors frequently say they see little special significance in the S&P 500 and Dow Jones Industrial Average hitting round-numbers in the hundreds and thousands. But such milestones do affect the sentiment of investors on Main Street, said Phil Blancato, head of Ladenburg Thalmann Asset Management in New York.

“People are concerned about missing out as the market continues to rally. They think maybe they need to finally jump in,” Blancato said. “The behaviour of the retail investor is more important than ever.” The S&P 500 information technology sector rose 0.30 per cent, powered by an Nvidia-led surge in chipmakers, while Apple rose 1.01 per cent in its first gain since unveiling new iPhones on Tuesday. The semiconductor index surged 1.71 per cent, boosted by Nvidia’s 6.32-per cent jump to a record high after Evercore ISI raised its price target.

AT&T rose 2.15 per cent and Verizon Communications added 1.44 per cent. Along with TMobile, they are offering deals for the newest iPhones that are less generous than in the past.

Wall Street largely shrugged off reports showing an unexpected drop in US retail sales last month and the first drop in industrial output since January, both in part due to the impact of Hurricane Harvey.