S&P 500, Dow Jones Set Records as Telecom, Tech Stocks Rallyby and
Investors looking ahead to ECB meeting for stimulus hints
Small-cap benchmark extends rally to 14% since Trump election
U.S. equities set records as phone companies rallied for a second day and were joined by tech companies as well as stocks that pay high dividends. The S&P 500 Index jumped 1.3 percent to 2,241.35 at 4 p.m. in New York, surpassing its previous high reached on Nov. 25.
The Dow Jones Industrial Average added 1.2 percent as all but three of its 30 stocks advanced. While the S&P 500 is up 3.7 percent since the U.S. election, the groups leading the market Wednesday -- phone, utility and tech stocks -- were those that have lagged behind big moves in financial and energy stocks the past month.
Small-cap stocks also extended their month-long rally, as the Russell 2000 Index added 0.9 percent to extend their advance to 14 percent since the election. The Nasdaq Composite index climbed 1.1 percent to within less than 0.1 percent of its high last month.
- Earlier, U.S. Stocks Fluctuate as Trump Roils Drug Stocks; REITs Rally
- Health care stocks only group down on day
- VIX up 3.7% to 12.2; climbed 0.5 points end of day as market rallied
- Health-care companies in S&P 500 decrease 0.8%; Nasdaq Biotechnology index falls 2.9%, worst day in more than a month
- Mortgage applications index fell 0.7% in week ended Dec. 2
- Fed officials are due to announce a decision on rates on Dec. 14. Futures traders are pricing in a 100% chance they’ll raise rates, compared with 68% odds at the start of November.
- Investors are looking ahead to the European Central Bank meeting Thursday for insight on how Italy’s referendum vote will affect the ECB’s quantitative-easing program
“The next major event is the ECB meeting tomorrow,” Andrew Brenner, the head of international fixed income for National Alliance Capital Markets, wrote in a note. “We doubt the ECB will want to wake the bond vigilantes by reducing QE, talk about ending QE, and not leave a dovish footprint. That being the case, markets should be OK.”
- S&P 500 is heading for its first annual advance since 2014, up 9.7% this year. Dow has rallied 12.
For more stories on the stock market: