Positive Economic Data Lifts S&P 500 to Record All-Time High

U.S. stocks rallied on Thursday as the S&P 500 hit an all-time high of 1,994.76, breaking two records. A spell of positive economic data and dovish comments expected from the Federal Reserve’s Head Janet Yellen on interest-rate hikes at a meeting of central bankers on Friday kept the markets buoyant. The S&P 500 crossed its previous intraday all-time high of 1,991.39 and ended above its previous record of 1,987.98 set on July 24. The Dow Jones also rose 0.36 percent, closing at 17,039.49. The Nasdaq also inched higher by 0.12 percent, ending the day at 4,532.10. Meanwhile president of the Federal Reserve Bank of San Francisco, John Williams, said the central bank is likely to see its first hike in the summer of 2015. In an interview with CNBC at Jackson Hole, Wyo. which is already filled with protestors worried about the central bank tightening ahead of the Federal Reserve’s conference, Williams said despite an improvement in the labor market, current economic conditions warrant low-rate policies.
S&P Tech and Financial Sector Indexes Rise

Investors shied away from making big bets prior to the policymaker’s meeting on Friday. Some remained skeptical of whether the markets will be able to sustain current gains. Shares of Bank of America Corp rose sharply by 4.1 percent to $16.16 after news of the bank’s $16.65 billion settlement with the U.S. government for mortgage related securities came in. The bank’s stock helped boost the S&P 500 financial sector index to its highest level of 312.45 since June 2008. Better than expected quarterly results from Hewlett-Packard Co helped the tech company’s shares gain 5.4 percent to $37 while technology shares added 0.5 percent to the S&P technology index. Sears Holdings was among the major losers, after Sears’ department stores and the Kmart discount chain reported quarterly losses. Sears shares were down 7.2 percent at $33.38.
Euro Slackens; U.S. Dollar Firm

The euro dipped further on Thursday following suggestions from the U.S. Federal Reserve of a sooner than expected rise in interest rates. Investors who have been watching the single currency closely have felt the European Central Bank’s monetary policy moving further from that of the Fed which is slowly tapering its asset purchasing program. The euro zone’s sluggish economic recovery also pegged the euro, which was last trading on Friday at $1.3280, away from its 11-month low of $1.3242 registered on Thursday. The U.S. dollar received a boost from upbeat U.S. housing data with the greenback hovering just below its 2014 peak against major currencies early on Friday. After almost peaking a 4 ½ month high of 103.97 yen on Thursday, the dollar was last trading at 103.70 yen.
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