The S&P 500 reached a record on Monday, backed by lower interest rate expectations, as investors expected quarterly earnings from renowned Facebook, Alphabet and Amazon companies later in the week.
Facebook Inc. (FB.O) grew 1.6% on Wednesday afternoon, while Amazon.com Inc. (AMZN.O) and Google-parent Alphabet Inc. (GOOGL.O) increased about 0.5% each, reports on Thursday.
Investors’ reactions to the reports of those leading growth companies could affect broader market sentiment as the S&P 500 trades about 1% below its July 15 record high close.
The technology index .SPLRCT rose 1.2%, the most among the S&P sectors, while the Philadelphia chip index .SOX surged 2%.
Shares of Boeing Co (BA.N) fell 1% and pressured the blue-chip Dow index .DJI after ratings agency Fitch revised its outlook on the planemaker to “negative” from “stable,” while the tech-heavy Nasdaq was lifted by chipmakers.
The European Central Bank meets on Thursday and money markets are pricing in a more than 50% chance of a 10 basis point cut in interest rates. Federal Reserve officials are set to meet a few days later, when they are widely expected to lower rates by at least 25 basis points.
The Nasdaq Composite .IXIC added 0.68% to 8,201.64.
Second-quarter earnings have mixed to the extent that major banks are concerned about the growth of profits in an environment of low interest rates. Microsoft Corp (MSFT.O) and International Business Machines (IBM.N), on the other hand, published better than expected results.
Halliburton Co (HAL.N) surged 8%, the most among S&P 500 companies, after the oilfield services provider’s second-quarter profit beat analysts’ estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored decliners.
The S&P 500 posted six new 52-week highs and five new lows; the Nasdaq Composite recorded 45 new highs and 105 new lows.
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27 September, 2019