Nasdaq and S&P 500 Reach New Highs; Dow rally
- Fall in weekly jobless claims, Q1 GDP unrevised at 6.4%
- Tesla shares boost Nasdaq and S&P 500
- Lilly jumps on plan to get Alzheimer’s drug approval
- Indices: Dow +1.04%, S&P 500 + 0.66%, Nasdaq + 0.72%
June 24 (Reuters) – The Nasdaq and S&P 500 indexes hit all-time highs on Thursday, with the Dow Jones also surging, as US President Joe Biden passed a bipartisan Senate infrastructure deal.
After the US economy grew at an annualized rate of 6.4% in the first quarter, thanks to the massive fiscal stimulus, investors are banking on an infrastructure deal that could guide the next stage of the recovery for the greater world economy. Read more
Caterpillar (CAT.N) jumped 3.4% and Boeing (BA.N) jumped 2.2%, helping to raise the Dow Jones Industrial Average.
âIn the short term, I think there will be ‘buy the rumor and sell the news’ in industrial materials and products, but as we start to see more details of how the money will be spent, I think we will have continued profit, âsaid Sal Bruno, chief investment officer at IndexIQ in New York.
Tesla Inc (TSLA.O) rose 5% after CEO Elon Musk said he would list SpaceX’s space internet company Starlink when its cash flow was reasonably predictable, adding that Tesla shareholders could have the preference to invest. Read more
Mega-caps Microsoft Corp (MSFT.O), Netflix Inc (NFLX.O) and Facebook Inc (FB.O) gained 0.4% to 1.3% and were among the biggest gains in the S&P 500 and Nasdaq.
Initial claims for state unemployment benefits fell from 7,000 to 411,000 for the week ending June 19, the Labor Department said Thursday, but were still above the 380,000 economists had forecast. Read more
The Commerce Department said the economy grew at a rate of 6.4% in the last quarter, unrevised from an estimate released in May.
Since the start of the month, the S&P 500 Growth Index (.IGX) has gained nearly 4%, outpacing the 2% drop in the value index (.IVX).
The Dow Jones Industrial Average (.DJI) rose 1.04% to 34,225.35 points, while the S&P 500 (.SPX) gained 0.66% to 4,269.79.
The Nasdaq Composite (.IXIC) added 0.72% to 14,374.56.
The S&P 500 indices of technology (.SPLRCT), healthcare (.SPXHC) and communications services (.SPLRCL) have reached record highs.
Eli Lilly and Co (LLY.N) jumped nearly 8% after the drugmaker said it would seek fast-track approval from the U.S. Food and Drug Administration for its investigational disease drug ‘Alzheimer’s this year. Read more
In response, Biogen Inc (BIIB.O), which received controversial approval for its Alzheimer’s drug aducanumab earlier this month, fell nearly 6%.
MGM Resorts International (MGM.N) rose 2.8% after Deutsche Bank upgraded the casino operator’s shares to âbuyâ from âholdâ.
Accenture Plc (ACN.N) gained 2% after the computer consulting firm raised its revenue forecast for the entire year. Read more
The advancing issues outnumbered the declining ones on the NYSE by a ratio of 2.34 to 1; on the Nasdaq, a ratio of 2.19 to 1 favored the advances.
The S&P 500 posted 33 new 52 week highs and 1 new low; the Nasdaq Composite recorded 96 new highs and 22 new lows.
Additional reports by Devik Jain and Medha Singh in Bangalore; Editing by Maju Samuel and Aurora Ellis
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