© Reuters. FILE PHOTO: A person waits on a Wall Street subway platform in Manhattan’s financial district, New York City, US, August 20, 2021. REUTERS/Andrew Kelly
Written by Stephen Kolb
NEW YORK (Reuters) – Wall Street closed higher in late summer, a slight rise in volume on Tuesday as the US Food and Drug Administration’s full approval of a COVID-19 vaccine on Monday and the absence of negative catalysts kept risk appetite ahead of the long-awaited event. Jackson Hole Symposium.
All three major US stock indexes advanced higher, with both the Nasdaq and the Nasdaq closing at all-time highs.
The session marked the 50th S&P 500’s record close so far this year.
The tech and tech-related giants were once again doing the heavy lifting, but the cyclical and small, economically sensitive cycles outperformed the broader market.
“Investors look to the horizon at the big looming Jackson Hole meeting,” Ryan Dettrick, chief market analyst at LPL Financial (NASDAQ :), said in Charlotte, North Carolina, referring to the Federal Reserve’s annual economic symposium on Friday. “But for now, the gratification from yesterday’s vaccine news is still up in the air.”
The Food and Drug Administration’s full approval of the Pfizer-BioNTech COVID-19 vaccine on Monday boosted optimism about an economic recovery that extended into Tuesday’s session.
The travel and leisure sectors, associated with economic re-engagement, outperformed the broader market. The S&P 1500 Airline and Hotel/Restaurant/Leisure indexes rose 3.7% and 1.6%, respectively.
“We have energy, retail, travel and entertainment, finance, and small businesses that are doing well today,” Detrick said. “And this is a sign that the reopening is still alive and well.”
Recent economic indicators are that the recovery from the most severe recession in US history is heading in the right direction, but not to the extent that the Fed is likely to tighten its dovish monetary policy.
Fed Chairman Jerome Powell is set to meet with other leaders of global banks when the Jackson Hole symposium takes place later this week, and his remarks will be closely analyzed for any evidence regarding the Fed cutting back on asset purchases and raising key interest rates.
The event will be held virtual rather than in person due to the spread of COVID-19 in the county, which has reduced expectations of any major announcement being made at the event.
“The fact that the Fed is having a virtual (Jackson Hole) meeting tells you that they may be thinking that they may need to continue to support the economy,” Detrick said.
The index rose 30.55 points, or 0.09%, to 35366.26, and Standard & Poor’s increased 6.7 points, or 0.15%, to 4,486.23 points, and added 77.15 points, or 0.52%, to 15019.80.
Energy was the biggest gainer among the 11 major sectors in the S&P 500, buoyed by the continued rise in crude oil prices. [O/R]
best buy Co Inc (NYSE) stock jumped 8.3% after the electronics retailer beat analyst earnings expectations and raised its full-year sales forecast.
US-listed shares of China’s e-commerce platform Bindudu (NASDAQ: Inc) rose 22.2% after reporting its first quarterly earnings.
JD acquired (NASDAQ:). com 14.4% in the wake of the Chinese online retailer’s comments on Monday that it does not expect any impact on business from a wave of regulations hitting the industry at home.
Other stocks of Chinese companies listed on US stock exchanges were also recovering, with the Invesco Golden Dragon ETF jumping 8.0%.
Cybersecurity firm Palo Alto Networks (NYSE: Inc) advanced 18.6% as brokerages raised their price targets after beating their full-year forecasts.
Advance issues outnumbered declining issues on the New York Stock Exchange by 2.17 to 1; On Nasdaq, the ratio was 1.82 to 1 in favor of advanced traders.
The S&P 500 hit 28 new 52-week highs and a new low. The Nasdaq recorded 96 new highs and 37 new lows.
Volume on US stock exchanges reached 8.97 billion shares, compared to an average of 9.08 billion over the last 20 trading days.