S&P 500, Nasdaq end at record highs

The S&P 500 index gained 0.43% to set a new record high 4,528.79, while the Nasdaq Composite traded up 0.90% for its own all-time high 15,265.89.

Aug 31, 2021 08:08 IST India Infoline News Service

Nasdaq
US indices ended at record highs on Monday as the 'dovish' Federal Reserve sees tapering by year-end with no change in monetary rates till 2023. Also, strong momentum in technology and consumer discretionary stocks aided the market.

The S&P 500 index gained 0.43% to set a new record high of 4,528.79, while the Nasdaq Composite traded up 0.90% for its own all-time high of 15,265.89. The Dow Jones Industrial Average underperformed, losing 55.96 points or 0.16% to close at 35,399.84.

Federal Reserve Chair Jerome Powell signalled on Friday that bond tapering could start this year, but the central bank is in no rush to hike interest rates.

Bond yields inch lower to 1.26% while US$ hits fresh 2 week lows at 92.65. 10-Year USA treasury yield softened further by 3bps to 1.28%, which aided rate-sensitive sectors like technology.

The dollar steadied near two-week lows on Monday. Investors have responded by pushing down the dollar index, which measures the currency's value against major rivals. It hit a two-week low at 92.595 before steadying around 92.69, little changed on the day.

In terms of key economic data, pending home sales data for July was published, which fell 1.8% MoM as against the consensus estimate of 0.5% growth.

Additionally, consumer confidence data, manufacturing and services PMI will also be in focus. 

Meanwhile, oil and gasoline futures rose slightly and energy stocks moved modestly lower on the back of damage from Hurricane Ida slamming into the gulf coast. 

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