NEW YORK REPORT
THE Dow Jones industrial average extended its winning streak to 10 days yesterday, a string of gains last seen in late 1996, and ended at another record high as investors were encouraged by data showing the labour market’s recovery was improving.
The S&P 500 took a late-day run at its record closing high of 1,565.15, but ended just two points away.
The 30-stock Dow Jones industrial average has been setting record highs since last week, when it rallied on
5 March to initially surpass its previous lifetime closing peak set in October 2007.
US equities have accelerated their run higher without a major consolidation since the start of the year, driven by improvement in the economy and the Federal Reserve’s continuation of its easy monetary policy.
“It’s simply a natural progression for prices to move to new highs in order for the market to advance. I don’t think it’s scaring investors,” said Tim Ghriskey of Solaris Group.
“Fund flows really have reversed direction, and money started moving out of money markets and some from fixed income to equities. This kind of trend doesn’t change easily so we can expect a lot more to come in.”
The Dow Jones industrial average gained 83.86 points, or 0.58 per cent, to 14,539.14, a record closing high.
The Standard & Poor’s 500 Index rose 8.71 points, or 0.56 per cent, to 1,563.23, about two points from its record closing high of 1,565.15, set on 9 October 2007.
The Nasdaq Composite Index advanced 13.81 points, or 0.43 per cent, to end at 3,258.93.
Three months into the year, the Dow has shot up nearly 11 per cent while the S&P 500 has gained 9.6 per cent. Earlier yesterday, the Dow set another lifetime intraday high at 14,539.29.