Published: Wed, June 21, 2017
Money | By Armando Alvarado

US stock indexes follow global markets higher, led by tech


Traders may be reluctant to make any significant moves following the upward move on Monday, which lifted the Dow and the S&P 500 to new record closing highs.

Apple rose 2.4 per cent, while Google's parent company, Alphabet, gained 1.6 per cent. Bank of America gained 1.8 per cent.

Asian stocks ended mixed on Tuesday, with Japanese stocks leading regional gains, as comments from an influential Federal Reserve official that rising wages would boost US inflation helped lift the dollar to a three-week high against the Japanese yen.

"Investors were temporarily chased from the space but many companies in the sector offer growth which is hard to find in the market as a whole", said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones Industrial Average closed up 0.7% at 21,528.99, the S&P 500 ended 0.8% higher at 2,453.46 and the Nasdaq advanced 1.4% to 6,239.01.

THE STOCK EFFECT: The sliding price of oil helped yank energy stocks in the S&P 500 down by 2.1 percent, the largest loss among the 11 sectors that make up the index.

Wall Street was back in rally mode on Monday (Jun 19), with the Dow and S&P 500 finishing at records as Apple, Facebook and other tech shares posted strong gains. Technology is by far the best-performing sector this year with gains of more than 17%.

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To read this article in one of Houston's most-spoken languages, click on the button below. In 3.22pm trading, the Standard & Poor's 500 Index dropped 0.5 percent.

In Asia, most equities trekked higher on Tuesday in morning session as markets awaited MSCI's decision on the potential inclusion of mainland Chinese stocks. Now, investors pounce when they see a dip, and analysts have noticed how ingrained the instinct has become.

"In the absence of really disgusting news, the stock market will go higher largely because of this under-owned nature of things".

Chris Beauchamp, chief market analyst at IG, said: "After a 3% drop in the past two weeks, tech is once again in favour among U.S. investors".

Perhaps a reversal of Beijing's recent crackdown in shadow banking loans, along with confidence boosting comments from Fed officials, could continue to push stocks higher.

French stocks leapt on Monday following a convincing parliamentary victory for President Emmanuel Macron, while banks rebounded following upgrades and retailers recovered from last week's losses.

In overseas markets, European shares rose after French voters gave their new president a political majority in parliament. The vote "will lend him enough support to rapidly implement his pro-business reform program", said Marion Amiot, senior economist at Oxford Economics. Some of its key holdings including Chevron Corp (CVX - Free Report) and Exxon Mobil Corp (XOM - Free Report) gained 1.9% and 1.5% respectively.

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