The S&P 500 index and the Nasdaq achieved record closing highs after a broadbased rally on Tuesday, as a clutch of better-than-expected earnings reports eased concerns about a slowdown.
In Tuesday’s trading the benchmark index finally erased all the steep losses it saw in late 2018 by ending the day above the previous record reached on Sept. 20. It closed just 0.3% below its intra-day record of 2,940.91 hit on Sept. 21.
The S&P has gone up by 17 percent so far this year, with help from a dovish Federal Reserve and hopes of a U.S.-China trade resolution as well as the upbeat start to the first-quarter earnings season.
The reason for the rise in S&P is a general belief it will make a new high and more earnings reports later in the week could push the index above its all-time high. Some expect this trend to continue for sometime.
The Dow Jones Industrial Average was up by 145.34 points, or 0.55%, to 26,656.39, the S&P 500 gained 25.71 points, or 0.88%, to 2,933.68 and the Nasdaq Composite added 105.56 points, or 1.32%, to 8,120.82.
Profits of S&P 500 companies may slip 1.3% in the first quarter, in what analysts say could be the first earnings contraction since 2016. However, forecasts have largely improved since the start of April.
Amazon.com Inc will report results later this week, gained 2.2%, which has been a big boost to the S&P 500 and the Nasdaq.
Ten of the 11 major S&P sectors were higher, with a rebound in healthcare, which gained 1.6%, providing the biggest boost. The healthcare sector has been slammed with 6.7% drop in the last two weeks on U.S. policy concerns.
The consumer staples sector was the only S&P sector that ended the day lower as investors chose riskier options. The energy and utilities sectors were the next weakest performers on the day.
Twitter Inc shares shot 15.6% after the social media company posted better-than-expected quarterly revenue and a surprise increase in monthly active users. Hasbro Inc rose 14.2% after the toy maker reported a surprise quarterly profit.
Coca-Cola went up 1.7% after its quarterly sales beat estimates, because of a great demand for Coke Zero. Lockheed Martin jumped 5.7% after it reported outperformed quarterly results and lifted its full-year profit forecast on strong demand for its missiles and fighter jets.
United Technologies also saw a steady 2.3% climb after it raised its full-year profit forecast. Procter & Gamble Co dropped 2.6% and was the biggest drag on the market after reporting a decline in its third-quarter operating margin.
Advancing issues outnumbered declining ones on the NYSE by a 2.91-to-1 ratio; on Nasdaq, a 2.82-to-1 ratio favored advancers.
The S&P 500 posted 47 new 52-week highs and four new lows; the Nasdaq Composite recorded 80 new highs and 45 new lows.
On U.S. exchanges was 6.75 billion shares changed hands, compared with the 6.64 billion average for the entire session over the last 20 trading days.
