NEW YORK: Wall Street’s main indexes extended their rally on Tuesday, with the Dow at a record high on a boost from healthcare and technology stocks, while investors positioned for the week’s key jobs report to gauge the Federal Reserve’s policy outlook.
Healthcare stocks were the biggest boosts to the S&P 500, up 1.6 percent. Drugmaker Moderna was up about 10 percent after BofA Global Research raised its price target on the stock.
Tech shares followed with a 0.5 percent rise. Memory-chip shares rallied, with SanDisk jumping 23 percent to a record high, while peers Western Digital and Micron Technology added 14.4 percent and 6 percent, respectively.
The broader materials sector was the biggest percentage gainer, largely lifted by lithium miner Albemarle’s 11 percent surge after Berenberg raised its target price on the stock.
The gains helped Wall Street build on its financials-led rally from Monday. The Dow is now about 1.7 percent away from the historic 50,000 mark.
At 11:52 a.m. ET, the Dow Jones Industrial Average rose 261.09 points, or 0.53 percent, to 49,238.27, the S&P 500 gained 17.29 points, or 0.25 percent, to 6,919.46 and the Nasdaq Composite advanced 42.21 points, or 0.18 percent, to 23,438.04.
“Following a very lackluster holiday-shortened last week, you’ve got a new sense of optimism in the market … this is a week where we’re going to get real economic data for the first time in months and that’s going to help clear out some of the fog,” Hogan said.
A series of labor market data will be on investors’ radar, including December’s crucial nonfarm payrolls numbers on Friday, commanding renewed importance given the Fed’s cautious stance on further interest rate cuts until there is more clarity on the health of the labor market.
Data on Tuesday showed S&P Global’s final composite PMI slipped to 52.7 in December from 53.0 in the prior month, while the services PMI eased to 52.5 from 52.9.
Markets also parsed comments from Richmond Fed President Tom Barkin, who reiterated the US central bank’s careful take on further cuts, in contrast to Governor Stephen Miran’s call for aggressive cuts in a Fox Business interview.
Meanwhile, investors brushed aside fears of broader geopolitical fallout after US forces captured Venezuelan President Nicolas Maduro over the weekend, betting the move could pave the way for US firms to gain access to Venezuela’s oil reserves.
Oil firms eased on Tuesday after robust gains in the prior session, with giants Exxon Mobil and Chevron down 1.4 percent and 3 percent, respectively.
Nvidia CEO Jensen Huang’s comments on the efficiency of the company’s new chips raised concerns over demand for cooling systems.
Shares of Johnson Controls fell 7.6 percent, while Trane Technologies dropped 6 percent.
AIG shares bottomed the S&P 500, down 8.3 percent after announcing its CEO, Peter Zaffino, would step down.
Advancing issues outnumbered decliners by a 1.27-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq.
The S&P 500 posted 47 new 52-week highs and seven new lows, while the Nasdaq Composite recorded 88 new highs and 29 new lows.
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