On Thursday, major indexes in the US closed at record highs as oil prices and retailers witnessed strong gains.
US Stock Indexes Rise Simultaneously In Historical High Close
For the first time since 1999, the S&P, NASDAQ and Dow posted historically high closing on the same day.
The benchmark S&P 500 rose 0.5 percent as energy rose more than 1 percent.
The Dow Jones Industrial average closed an estimated 115 points higher with the most gains being attributed to 3M.
JJ Kinahan, senior strategist at TD Ameritrade said, “Good things are going on for consumers right now.”
He added that the positive results recorded by Alibaba have boosted the market, as it is an indication that Chinese domestic consumers are spending. In the US, Alibaba shares hiked 6.14 percent.
Meanwhile, the NASDAQ composite rose 0.5 percent amidst gains of 1.07 percent by the iShares Nasdaq Biotech ETF.
Bruce Bittles, senior investment strategist at Baird observed, “There has been a broad-based rally as the market follows a higher, broader trend.”
US crude settled at $43.49 a barrel, a $4.27 rally following comments of possible intervention to stabilize oil prices by the Saudi oil minister.
Chief strategist at Wunderlich Securities, Art Hogan said “Oil needs stabilization and if we get above 40, we are going to be fine.”
Other analysts added that oil would likely stay in the range of $42-$45.
Recently, US equities have been in a tight range but have been able to attain record highs. The CBOE Volatility Index, the biggest measure of panic in the market traded down 2.4 percent at 11.7 points.
Even then, some analysts have expressed concern over the low volatility in the market saying it is over extended.
Matt Tuttle, CEO at Tuttle Tactical Management said, “Although everyone is bullish right now, I believe a correction is coming up.”