On Monday, world stock markets continued to witness a rise in stock prices as indexes in the US saw new gains.
USA Shares Close at Yet Another Historical High
Shares of US companies continued to boast their ascend in a new historical high.
Citigroup and the stock of other financial companies saw the Standard &Poor’s index rise 12.15 points up to 2,328.25. This would mark the third successive day the index has set a new record.
Meanwhile, the Dow Jones industrial Average rose 142.79 to 20,412.16 and the Nasdaq composite rose 29.83 to 5,763.96. In the early hours of trading, markets in Asia and Europe continued to rally.
Following several weeks of stalling, stocks have resumed their climb upwards.
According to market observers, sustained improvements in the US economy, higher than expected profits from companies coupled with friendly business policies by the Trump administration have played an essential role in boosting the performance of the stock market.
Randy Frederick, vice president of derivatives and trading at the Schwab Center for Financial Research said, “The market has got such great momentum now that it will continue unless something slows it down.”
He added, “There is really no negative catalyst at the moment.”
In the last five days, the S&P 500 has been on the rise at an average rate of 8.8 percent since the November election win by Donald Trump.
Financial firms and others whose companies are largely dependent on the performance of the economy were some of the biggest winners at the close of trading on Monday.
Financial stock on the S&P500 climbed 1.1 percent, making this the largest gain in the eleven industries included in the index. Companies in the industrial sector climbed 1 percent.
Apple, the largest stock in the S&P 500 closed at a record high after climbing $1.17 to close at $133.29.
The tech giant’s performance has significant implications for many 401(k) accounts given that it is the largest publicly traded firm in the world. Additionally, up to 3.5 percent of S&P 500 index fund investments can be attributed to Apple stock.
Telecoms companies on the S&P 500 were the only ones that saw a decline amidst worries that the sector may face tough pricing wars.
Verizon, which introduced an unlimited data plan saw a 43 cents decline to close at $48.55. Rivals AT & Sprint fell 73 cents to $40.65 and 12 cents to $8.84 respectively.
However, several events could impact these market trends. For starters, most investors expect that the US Federal Reserve will continue to raise interest rates throughout the year, albeit gradually.
There is also the expectation that inflation will rise following policies proposed by the Trump administration.