US shares, Dow Jones and S&P 500, close at record highs

THE Dow and S&P 500 shot up to a new record this morning as global equity markets rallied again amid confidence in US economic strengthening.

THE Dow and S&P 500 shot up to a new record this morning as global equity markets rallied again amid confidence in US economic strengthening and the continuation of central bank easy-money policies.

The Dow Jones Industrial Average jumped 0.7 per cent to 18,347.67, busting the prior record in May 2015 by 35 points.

The broadbased S&P rose 0.7 per cent to 2152.14, hitting a record for the second straight day, while the Nasdaq Composite Index gained 0.7 per cent to close at 5022.82, ending above 5000 for the first time all year.

The gains were fairly broadbased, with financials, technology, energy and industrials also posting solid advances, while defensive sectors such as utilities and consumer staples pulled back.

Analysts have attributed the strong gains in the US to greater faith in the economic outlook after Friday’s strong June jobs report, combined with confidence the Federal Reserve will not hike interest rates anytime soon.

Beyond that, investors are scared to miss out on a big rally, analysts said. “Momentum builds momentum,” said Charlie Bilello of Pension Partners.

“It’s a bull market that nobody loves, but it continues to go higher because everyone is covering their backsides,” said Gregori Volokhine, president of Meeschaert Capital Markets.