Markets

Dow Jones continues climb towards 20,000 mark

Nasdaq hits record as technology and healthcare stocks rise

Index climbs on optimism over president-elect Donald Trump’s plans for deregulation and infrastructure spending. Photograph: Reuters

Wed Dec 28 2016 - 09:59

Wall Street was higher on Tuesday, with the Dow Jones industrial average resuming its climb towards 20,000 and the Nasdaq hitting a record as technology and health stocks rose.

The blue-chip index has been riding on a post-election rally, feeding on optimism that president-elect Donald Trump’s plans for deregulation and infrastructure spending would bolster the economy.

The index, which came within 13 points of breaching the elusive 20,000 level last week, marked its seventh straight week of gains on Friday and is on track for its best quarter since 2013.

Catch-up rally

Nine of the 11 major S&P 500 sectors were higher, with technology and healthcare stocks giving the broader index its biggest boost.

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The defensive utilities and telecom services were the only losers.

"It is a bit of a catch-up rally today, with leadership today coming from areas such as healthcare and technology – those that have not participated fairly in the rally," said Eric Wiegand, senior portfolio manager at the Private Client Reserve at US Bank.

At about 4pm the Dow was up 34.08 points, or 0.17 per cent, at 19,967.89, after rising to as much as 19,980.24. The S&P 500 was up 7.9 points, or 0.34 per cent, at 2,271.69.

The Nasdaq Composite was up 38.74 points, or 0.71 per cent, at 5,501.43, easing from its record intraday high of 5,512.36.

Apple was up 0.62 per cent at $117.24, Amazon. com rose 1.7 per cent to $773.33 and Biogen shares rose 2 per cent to $293.28. – (Reuters)

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