Stock ETFs Rally as S&P 500 Crosses 1,700
August 1st at 1:53pm by Tom Lydon
Exchange traded funds linked to broad U.S. benchmarks are touching all time highs, with the S&P 500 climbing over the psychological 1,700 mark for the first time.
The SPDR S&P 500 (NYSEArca: SPY) was 0.9% higher Thursday, trading about 8.8% above its 200-day exponential moving average, and SPDR Dow Jones Industrial Average (NYSEArca: DIA) was up 0.6%, trading 7.7% above its 200-day EMA.
The equities market rallied after the Federal Reserve announced that the accommodative measures will be kept in place until the U.S. economic recovery showed more momentum. [Accommodative Fed Measures to Support Stock Market, ETFs]
“Central banks throughout the world remain accommodative and you do not want to fight the central banks,” Phil Orlando, New York-based chief equity strategist at Federated Investors, said in a Bloomberg article. “All of the data from an economic standpoint is telling that the economy is continuing to get better, the labor market is improving, and corporate earnings are coming in better than expected. So this market should continue to work higher.”
Additionally, a number of other economic indicators helped drive the rise. An increase in Chinese business sentiment helped bolster Asian markets overnight, the Labor Department announced a dip in Americans seeking unemployment benefits and earnings gains from several U.S. companies, reports Christina Rexrode for the Associated Press.
The S&P 500 was trading at around 1,703 in mid-day while the Dow Jones Industrial Average was hovering around 15,615.
All 10 industry sectors in the S&P 500 were up, with financials and industrials leading the charge.
SPDR S&P 500
SPDR Dow Jones Industrial Average
For more information on the S&P 500, visit our S&P 500 category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.