Wall Street Stocks Extend Gains, S&P500 and Nasdaq Reach New Highs
30 Jun 2021 · 3rd Party Analysis
- Stocks climb to records following Monday’s strong upswing
- US home prices surge to multi-year high
Stocks on Wall Street were steady to the upside yesterday. Continuing their swing from the prior day, the S&P500 and the Nasdaq Composite pushed higher to new records amid a relatively choppy and quiet trading day.
The S&P500 edged higher by just 1.19 points, or 0.03%, to close at a new all-time high of 4,291.80. The Nasdaq Composite climbed 27.83 points, or 0.19%, to end the session at a new peak of 14,528.33. The Dow Jones Industrial Average swung from gains to losses throughout the session and ultimately managed to snatch a win. The 30-stock benchmark average advanced 9.02 points, or 0.03%, to 34,292.29.
The broad-based S&P500 climbed to its 33rd record close of the year. Compared with the previous year, it took the index the entire 2020 to reach that number. The tech-heavy Nasdaq Composite reached its 19th record close of 2021. The Dow Jones now hovers less than 1.5% away from its last record high in early May.
out to be among the few winners on Monday as they climbed moderately by 0.4% supported by investors’ demand for pandemic-resistant sectors.
Positivity Still Characterizes Stocks
The three major stock indexes yesterday pulled back from their session highs but still managed to end in positive territory. Earlier in the day, the Dow Jones received a boost after private research group The Conference Board said its index of consumer confidence advanced in June. The results indicated that Americans are willing to spend more on goods and services, relative to the previous month. In addition, the index tracked consumers were more optimistic about business than they were for May.
Housing data released Tuesday confirmed that statement. New data showed that US home prices surged at their fastest pace ever in April. The S&P500 CoreLogic Case-Shiller National Home Price Index, an average measure of home prices in major metropolitan areas across the states, rose 14.6% in the year that ended in April. The figure was up from 13.3% for May, on an annual basis. April’s number marked the highest annual rate of housing price growth since the index was launched in 1987.
The indicator also confirmed the high demand for homes in the US according to the National Association for Realtors. Home prices in May experienced their biggest annual jump in more than 20 years as the average sales price for a home in May topped $350,000 for the first time, or an increase of 24% compared with the same month a year ago.
On that note, Tuesday’s gains went to economically sensitive stocks. Shares of homebuilders rallied with PluteGroup and Lennar rising 2%, and 0.8%, respectively. The climb in stocks yesterday was part of a broader rally that has been going for weeks as investors have increased their bets on prospects of fresh government spending and swift economic recovery.
Meanwhile, in Europe, the markets pared some of Monday’s losses as benchmark indexes climbed and ended the day in the green. The region-wide Stoxx Europe 600 gained 1.43 points, or 0.31%, to end Tuesday’s session at 456.37. The German DAX jumped 136.41 points, or 0.88%, to 15,690.59. The UK’s FTSE100 and the French CAC40 gained 0.21% and 0.14%, respectively.