Technology Stocks Propel S&P to New Heights

On Wall Street on Friday, the S&P 500 index reached a new record level, primarily due to the rise in technology stocks towards the end of trading.

The Dow Jones strengthened by 35 points, or 0.24 percent, to 15,118 points, while the S&P 500 rose by 0.43 percent to 1,633 points, and the Nasdaq index increased by 0.80 percent to 3,436 points.

After a drop in prices the day before, trading was cautious yesterday. For most of the day, the indices stagnated, with stock prices only rising towards the end of trading.

The Nasdaq led the rise, thanks to a 1 percent increase in Google’s stock price, which positively affected the S&P 500.

Several other technology companies also posted larger gains, which cushioned the decline in stock prices in the energy sector.

Due to falling oil prices, the S&P energy sector index slipped by 0.5 percent, with Exxon Mobil’s stock price decreasing by 1 percent.

There were no macroeconomic data or company news yesterday that could significantly move the market, and the positive sentiment among investors is attributed to the security provided by the loose monetary policy of the U.S. Fed and several other central banks around the world.

However, the question is, analysts say, whether the price rise can continue solely based on monetary policy.

“I think it will be difficult to surpass these levels in the short term. There aren’t many positive drivers to continue the rise, and pretty much all the good news is already priced into the market,” says Natalie Trunow, director at Calvert Investment Management.

As has been customary lately, the price increase was achieved with a modest trading volume. On Wall Street, NYSE MKT, and Nasdaq, 5.7 billion shares changed hands yesterday, while the average daily volume this year is 6.4 billion.

For the entire week, the Dow Jones strengthened by 1 percent, while the S&P 500 rose by 1.2 percent, and the Nasdaq index by 1.7 percent.

European stock markets also saw price increases yesterday. The London FTSE index strengthened by 0.49 percent to 6,624 points, while the Frankfurt DAX rose by 0.19 percent to 8,278 points, a new all-time high, and the Paris CAC increased by 0.64 percent to 3,953 points.