Dow soars as stocks start new year strong

Stocks got the new year off to a roaring start Thursday with more solid gains and record highs for major U.S. indexes, following up on a strong finish to 2019.

The Dow Jones Industrial Average climbed more than 300 points, as shares in Walt Disney, Boeing, Apple and other big companies rose. Technology sector stocks accounted for a good part of the upward move. Smallercompany stocks lagged the broader market’s gains.

The market has been grinding higher for weeks, pushing index-country’s es to record highs, as concerns about the strength of the economy and the possibility of further escalation in the U.S.-China trade war have eased. Three interest rate cuts by the Federal Reserve and signals that the central bank is in no hurry to raise rates this year have also helped steady markets after a summer slump.

“At this point, the momentum we saw in December is carrying into January,” said Willie Delwiche, investment strategist at Baird. “It might take a little bit to really figure out whether the optimism expressed in U.S. stocks all of last year is warranted with respect to fundamentals, but for now, the benefit of the doubt is with the bulls.”

The S&P 500 climbed 27.07 points, or 0.8 percent, to 3,257.85. The Dow rose 330.36 points, or 1.2 percent, to 28,868.80. The Nasdaq composite gained 119.58 points, or 1.3 percent, to close at 9,092.19. All three indexes notched new highs.

Smaller company stocks didn’t fare nearly as well. The Russell 2000 index slid 1.70 points, or 0.1 percent, to 1,666.77.

The latest gains follow a blockbuster performance by the market in 2019. The S&P 500 and

Nasdaq closed out the year Tuesday with their best annual performance since 2013.

Also Monday, bond prices rose. The yield on the 10-year Treasury fell to 1.88 percent from 1.91 percent late Tuesday.

U.S. stocks headed higher from the get-go Thursday as markets reopened after the New Year’s Day holiday. The market got a boost following a rally overseas after China’s central bank said it will free up more money for lending.

China’s central bank said it will cut the amount of money banks will be required to have on hand. The move is expected to boost the slowing economy ahead of the Lunar New Year, which falls on Jan. 25.

“China’s cutting is a reminder that central banks are providing liquidity,” Delwiche said.

Energy futures bounced back from an early slide to close mostly higher. Benchmark crude oil rose 12 cents to settle at $61.18 a barrel. Brent crude oil, the international standard, gained 25 cents to close at $66.25 a barrel.

Wholesale gasoline rose 1 cent to $1.70 per gallon. Heating oil was little changed at $2.02 per gallon. Natural gas fell 7 cents to $2.12 per 1,000 cubic feet.