The Nasdaq Composite reached a new record high on Tuesday, led by gains in technology stocks, while the S&P 500 and Dow Jones Industrial Average also rose.
The Nasdaq Composite reached a new record high on Tuesday, led by gains in technology stocks, while the S&P 500 and Dow Jones Industrial Average also rose.
The Nasdaq rose 1.5% to close at 14,253.27, surpassing its previous record high set in June. The tech-heavy index was lifted by gains in major tech stocks such as Apple, Microsoft, and Amazon.
The S&P 500 gained 0.5% to close at 3,959.98, just shy of its record high set earlier this month. The Dow Jones Industrial Average rose 0.2% to close at 31,522.75.
Investors were optimistic about the progress of the COVID-19 vaccine rollout and the potential for a large stimulus package to be passed in the US. They were also encouraged by comments from Federal Reserve Chair Jerome Powell, who said that the central bank would continue to support the economy with low interest rates and asset purchases.
Some analysts cautioned that the market could be due for a pullback, given its rapid gains over the past year.
“While we remain optimistic about the market’s outlook, we also believe investors should be prepared for the potential of a market pullback, particularly given the strong gains we’ve seen over the past year,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.
Overall, the stock market has continued to recover from the pandemic-induced downturn last year, with major indices posting strong gains in recent months. However, concerns about rising inflation and potential interest rate hikes have led to some volatility in the market in recent weeks.
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